Peterborough is the Buy to Let Star of the EastMake Text Bigger
Landlords in Peterborough are enjoying the best rental returns of anywhere – even the flying high yields in London, according to letting agents haart.
Peterborough reigns supreme for one, two and three bedroom homes, says the first buy to let index from the letting agent, which has offices across England and Wales.
Property investors in the city can expect yields of 8.7% on a one bedroom flat, 9% on a two-bedroomed apartment and 6.7% on a three-bed house.
The haart index reveals a north/south divide in common with many other property reviews – but in reverse.
Where most have London leading the way with property prices, rents and yields, the haart index has the capital lagging Eastern England – including Peterborough – with the East Midlands and South Yorkshire taking second and third spots with London coming in fourth.
London buy to let yields are averaging between 5% to 7%, says the agent.
Managing director Andrew Benn said: “While London and the South East has traditionally been the focal point for the majority of buy to let activity, we are starting to see investors focus more on other parts of the country, such as Peterborough, which thanks to rising rents, are offering prospective landlords annual returns of up to 9%, a yield they simply wouldn’t be able to achieve with other forms of mainstream investment.”
The city showing the highest average rent rise outside London in 2011 was Cambridge, with an increase of 19%, according to haart.
Prices started the year at £750 per month and rose steadily to December’s average of £950. Prices peaked in August at £1,148.
Philip Parsons, manager of the Cambridge branch, said: “Prices are likely to increase in 2012 due to the continued demand for rental property in the city but any rises won’t be at the level we have seen in the past 12 months.
“We are likely to see people taking out longer tenancies due to the general shortage of available and affordable alternatives out there in the market. The demand is such at certain times in Cambridge that we have let a property before we’ve even had time to market it on our website.”
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