Where are the current England and Wales BTL hotspots?

The latest data from Manchester-based online estate agency, yieldit, has shown that there is a clear difference in regions when it comes to investing in residential buy-to-let, with a 2.5% difference in NET yields between the best performing and worst performing regions.

Related topics:  Landlords
Warren Lewis
25th October 2018
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According to the data gathered from the agency’s current available properties, the Midlands came out on top, with average NET yields of 6.6% including properties in Nottingham and popular commuter town, Tipton.

Yorkshire, the North East, Wales and the North West followed, with each region commanding average NET yields of 5.5% and higher. Of this bracket Yorkshire led the pack at 5.7%, with areas like Bradford and Scarborough performing particularly well, producing NET yields in excess of 6%.

The South East and East of England lagged behind with averages of 4.4% and 4.1% respectively. Importantly though data shows that London pulled down the average of the South East with NET yields of just 3.7%.

Conversely areas like Folkestone in Kent bucked the trend with NET yields of 5.8%, thanks to its revival as a coastal commuter hotspot under an hour from the capital, further boosted by investment into its Creative Quarter which has become the home of numerous successful businesses.

Ryan Hughes, Head of Sales at yieldit, said: “As always it’s interesting to look at which areas are performing the best in terms of NET yields. It’s no surprise to see the Midlands leading the way with attractive asking prices and rising tenant demand.”

Data from Birmingham Live confirms the popularity of the city, showing that in 2017 7,620 people left London in order to move to Birmingham, making it the most popular destination for Londoners in England.

He added: “It’s clear that high property prices in the south and London have had a negative impact on NET yields and as such investors are looking further afield. As renters continue to abandon the capital in favour of our regional cities we are seeing landlords follow – a trend that shows no sign of abating any time soon.”

Average NET yield by region according to yieldit’s available properties:

Midlands – 6.6%
Yorkshire – 5.7%
North East – 5.6%
Wales – 5.6%
North West – 5.5%
South East – 4.4%
Wales – 5.6%
East of England – 4.1%

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