The best Government regeneration schemes for Buy to Let

by Property 118

10:01 AM, 2nd September 2020
About 3 weeks ago

The best Government regeneration schemes for Buy to Let

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The best Government regeneration schemes for Buy to Let

The latest research by Howsy, has revealed the best spots of the UK property market being bolstered through Government infrastructure spending and investment, for buy-to-let investors with an eye on the future.

Howsy analysed 34 areas currently benefiting from Government investment and likely to see demand for rental properties grow, ranking them on which offer the best available rental yield right now based on local market data.

With an average house price of £146,000 and an average current rent of £881 per month, the regeneration of Dundee Waterfront ranks top with an average yield of 7.2% in the surrounding rental market.

Expected to bring 7,000 further jobs, it’s thought to be one of Western Europe’s most extensive waterfront projects and one of the biggest urban developments in Scotland, presenting a wide array of opportunities for developers, investors and businesses.

Liverpool Ten Streets is the second-best buy-to-let where current Government investment and regeneration is concerned. The current average cost of investing in the surrounding area (£123,480), coupled with the average monthly rent available (£657), would see landlords receive a 6.4% return on their investment each month.

Other areas of current regeneration to rank in the top 10 for highest current rental yields include: –

Founder and CEO of Howsy, Calum Brannan, commented: “Investing can often require a long-term vision but with buy-to-let profitability being squeezed in recent years, investing with an eye on the future isn’t a luxury many landlords can afford at the moment.

However, that doesn’t mean a savvy investor can’t receive an immediate return on their buy-to-let bricks and mortar while also benefiting from Government regeneration further down the line.

There are a whole hosts of areas currently undergoing extensive regeneration projects which will increase rental demand in the short-term due to the construction itself, but also in the long-term, as these new developments bring more job opportunities and a greater appeal for living in general.”

Regeneration projects / programmes Average price Average rent pm Average yield
Dundee Waterfront £146,000 £881 7.2%
Liverpool Ten Streets £123,480 £657 6.4%
Destination Bootle £90,439 £455 6.0%
Tribeca Belfast £184,305 £921 6.0%
Wirral Waters £100,426 £487 5.8%
Manchester Mayfield £195,429 £851 5.2%
Purfleet on Thames £220,969 £961 5.2%
South Shields 365 £101,079 £436 5.2%
Salford Crescent £207,065 £862 5.0%
Cardiff Central Square £192,230 £791 4.9%
Leicester Waterside £172,754 £709 4.9%
Derby City Centre £141,696 £569 4.8%
Ravenscraig £113,956 £452 4.8%
Hartlepool £107,956 £415 4.6%
Birmingham Big City Plan £201,989 £760 4.5%
Northampton £189,569 £705 4.5%
Port Loop £215,553 £799 4.4%
East Whitlawburn £152,028 £550 4.3%
Granton waterfront £276,275 £974 4.2%
Aylesbury Now £553,956 £1,916 4.2%
Bolton £163,550 £553 4.1%
Chatham Waters £241,532 £805 4.0%
Meridian Water £408,149 £1,349 4.0%
Old Kent Road £563,027 £1,756 3.7%
Elephant & Castle £613,137 £1,883 3.7%
Stockport Town Centre West £229,792 £680 3.6%
Wembley £493,263 £1,402 3.4%
Chesterfield Waterside £197,468 £551 3.3%
Acton Gardens £551,562 £1,504 3.3%
Old Oak Common £541,188 £1,472 3.3%
North Quay Hayle £265,788 £713 3.2%
South Kilburn £906,158 £2,016 2.7%
Hunstanton £299,441 £598 2.4%
Earls Court £1,128,754 £2,212 2.4%
Property market data sourced from PropertyData

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