High yield cities and property types

High yield cities and property types

15:27 PM, 17th November 2021, About 2 weeks ago 1

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Research by Sequre Property Investment, has revealed which major cities are home to the largest level of high yield rental homes, as well as which property type presents the best opportunity for a robust buy-to-let return. Looking at current market stock looking at the level of high-yield investment opportunities available across 18 major cities across the nation.

High-yield hotspots: In terms of the sheer availability of high-yield stock on the market, Nottingham is the nation’s high-yield investment hotspot. The city accounts for 21% of all property investment opportunities currently on the market offering a high-yield opportunity.

Cardiff ranks second, accounting for 16% of all high-yield investment opportunities, with Newcastle (14%) and Southampton (11%) also offering an abundance of high-yield investment options.

Highest yields by property type: When it comes to the split of high-yield investment opportunities by property type, there is a clear winner across the majority of cities.

Flats account for the highest proportion of high yield rental stock across eight of the major cities analysed, although this dominance does range from 94% of the high-yield market in Bristol to 31% in Nottingham.

However, in Liverpool, Manchester and Swansea, terraced homes account for the largest proportion of high-yield market share, while in Birmingham it’s semi-detached homes and in Bournemouth, detached homes rank top.

Sales Director at Sequre Property Investment, Daniel Jackson, commented: “You’d be forgiven for thinking that a high return buy-to-let investment has become a thing of the past and in some cities across the nation, you wouldn’t be far off the truth.

However, above-average returns can be secured if you know where to invest and what to invest in and so utilising expert guidance and market knowledge is key in the early stages when looking to build a successful property portfolio.

Knowing what kind of return a given location will bring is a start, but it’s also important to break the market down further, looking at which property type performs best, as well as the cost of investment. The market itself is incredibly diverse and so a far more strategic approach is required if you want to make a sound investment.”

Table shows the proportion of high yield investment opportunities in each city, how these are broken down when looking at property type and the average cost of investment
Location Average price – high yielders Proportion of all high yield investment properties (all locations) Flat % Terraced % Semi % Detached %
Nottingham £201,013 21% 31% 18% 27% 24%
Cardiff £198,284 16% 54% 29% 8% 8%
Newcastle £172,888 14% 64% 17% 13% 5%
Southampton £210,645 11% 66% 16% 12% 7%
Leeds £204,385 8% 51% 27% 15% 8%
Liverpool £161,918 6% 14% 56% 25% 5%
Glasgow £125,858 6% 87% 5% 3% 5%
Birmingham £264,032 5% 15% 34% 40% 10%
Bournemouth £315,722 4% 29% 5% 14% 51%
Manchester £215,065 4% 37% 44% 16% 3%
Swansea £143,214 3% 33% 43% 18% 6%
Bristol £328,775 2% 94% 4% 0% 1%
Bradford £93,445 1% 86% 0% 3% 11%
London x x x x x
Sheffield x x x x x
Portsmouth x x x x x
Plymouth x x x x x
Edinburgh x x x x x
Data sourced from PropertyData and based on a sample of 4,364 high yield property investment opportunities across all cities


Comments

by Mick Roberts

11:02 AM, 18th November 2021, About 2 weeks ago

Yes,
Come to Nottingham. I'm making a fortune since Nottingham Council Selective Licensing came in. And I'm still charging tenants cheaper than market rent. You'll never have a void again, so no expensive refurbishments in-between tenancies.

Tenants do lose though as no other Landlord takes Benefit tenants though cause of Selective Licensing conditions.
And landlord can lose if he she wishes to sell cause tenants can never move of their own free will again. Cause of Selective Licensing. And a touch of Universal Credit thrown in.

So there u have it Govt and Councils, u making Landlords more wealthy, and tenants not able to move. An unintended consequence of your actions to get at the minority bad landlords.


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