Top 10 places for best buy to let rent returnsMake Text Bigger
Buy to let landlords looking for the best and worst places for investing in two-bedroom homes to rent have had all the numbers crunched for them by a leading property portal.
Statisticians from www.home.co.uk researched and calculated gross rental yields on homes in around 250 towns and cities by comparing asking prices and rents.
Top of the table was Bootle, Merseyside, with a gross rental yield of 7.7%.
The web site shows 331 homes are for sale in the area with an average asking price of £70,000, while 113 are available to rent at an average monthly cost of £450.
“Investors in the rental property market need to research their chosen location carefully in order to maximise potential yields. These top gross rental yields are highly attractive to buy-to-let investors. They more than cover typical mortgage interest payments and other expenses and offer a good potential return on capital,” said Doug Shephard, director at www.home.co.uk.
The top 10 locations for two-bedroom home gross rental yields are:
- Bootle 7.7%
- Hamilton 7.4%
- Thamesmead, South East London 7.3%
- Mansfield 7.0%
- Manor Park, East London 6.9%
- Brentford 6.7%
- Beckton, East London 6.7%
- Dundee 6.6%
- Central London 6.5%
- Hull 6.4%
The worst letting locations are the most expensive and fashionable areas of London – including Knightsbridge, Charing Cross, Soho, Holborn, Marylebone, Mayfair, The Strand, Regents Park and Bloomsbury.
Typical rental yields in these areas are between 3.6% and 4.3%.
Outside London, Margate has one of the worst returns for investors with a typical rental yield of 4.3%.
The www.home.co.uk web site is a useful resource for landlords listing around 750,000 homes to buy and 120,000 to rent at any one time. The site presents statistics like number of homes to rent and average rents for post code areas.
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