The top 10 BTL hotspots for portfolio landlords revealed

The top 10 BTL hotspots for portfolio landlords revealed

9:51 AM, 9th April 2024, About 2 months ago 2

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Manchester’s M14 postcode, which includes Fallowfield, Rusholme, Old Moat and Ladybarn, is the UK’s most popular location for buy to let investors with four or more properties, research reveals.

The findings from Paragon show that the area’s proximity to both Manchester and Manchester Metropolitan Universities makes it a prime location for student housing.

The lender says that BTL investors could enjoy potential rental yields of up to 7.5%.

The study also reveals that terraced houses are the most popular property investment type in all the top locations except Crewe, where multi-unit freehold blocks were favoured by investors.

‘Portfolio landlords have a strategy of targeting major towns’

The bank’s managing director, Richard Rowntree, said: “Our data shows that portfolio landlords have a strategy of targeting major towns and cities across England and Wales, from Brighton and Hove on the south coast, up through the Midlands and Wales and onto Newcastle.

“Something that links many of these diverse areas is their proximity to universities or large employers, such as the NHS or manufacturing and distribution hubs.

“This helps to illustrate the crucial role that the PRS plays in supporting further education provision and the workforce, both vital facets of the UK economy.”

B29 postcode is close behind

The B29 postcode in Birmingham, which includes Selly Oak, Bournville, Edgbaston and other districts, is close behind.

Selly Oak is home to Birmingham University, while Edgbaston boasts the Queen Elizabeth Hospital, one of the UK’s largest, attracting both students and professionals.

This is the most expensive postcode on the list due to the presence of large period properties, and B29 offers potential yields of up to 6.9%.

Rounding out the top three was DH1 in Durham, where the University of Durham’s Palatine Centre contributes to a vibrant student market and potential yields of up to 7.3%.


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Comments

Shinh

10:30 AM, 9th April 2024, About 2 months ago

What's weighted rental yield?

TheBiggerPicture

9:48 AM, 11th April 2024, About 2 months ago

Reply to the comment left by Shinh at 09/04/2024 - 10:30
I assume its like an average, but adjusted for house price.

So if one house of a million has a rental yield of 5% and another of 500k has a rental yield of 10% then the weighted rental yield is :
(1,000,000*.05 + 500,000*.10) 1,500,000= 6 2/3 % rental yield.

The average rental yield would have been 7.5%

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