If you’re in the position of investing in the buy to let market, then you’re in luck, as, right now, the UK is doing very well in this particular area. With a thriving rental market across many towns and cities, recent research has highlighted that Oxford, Bristol, and Cambridge are particularly good for finding lucrative investment properties. Read on to discover more about these exciting rental opportunities.
Bristol
Top of the UK charts when it comes to the buy to let market, Bristol has plenty to recommend it to investors. House prices are still on the rise, despite the current economic downturn, which makes this area a shrewd bet if you hope to see your capital grow over the long run. You can also expect to make a healthy 4.6% annual yield. Bristol’s great performance is explained here.
Oxford and Cambridge
Known for their prestigious universities, both of which come with plenty of statement architecture, there will always be a healthy buy to let market for those looking to capitalise on the student rental sector. Yet don’t forget that these areas are also very popular with professionals and families who are also keen to find a great place to live. Indeed, Oxford alone has 29% of its residents living in privately rented accommodation [1], whilst Cambridge boasts an extremely low vacancy rate of just 0.7%. This means that your rental investment is unlikely to remain unoccupied for long.
With so much characterful period housing stock available to buy, it’s also especially important to prioritise a building survey Oxford and Cambridge. Working with an expert such as Sam Conveyancing can help you to avoid compromising your investment on a property with significant age-related issues.
Manchester
If it’s a high yield that you’re looking for, then Manchester is the place to choose for your next buy to let venture. This vibrant city commands the highest rental annual yields in the UK, with an average of 5.9%. The steady growth of house prices in this city also means that it makes for a sound longer term investment.
Luton
Often overlooked in favour of its more famous neighbour, London, Luton is, in fact, an ideal place to try your hand at the buy to let market. Its appeal is steadily growing thanks to its convenience as a dormitory town for commuters, and house prices have soared as a result of this increased demand. This means that for the first time, Luton has earned a place in the top ten best places to operate in the buy to let market, according to the City Tracker by Aldermore [2].
The City Tracker analyses the five key signs of buy to let performance: average total rents, best short term returns through rental yields; best long term investment results from property value growth; the percentage of city residents in privately rented accommodation; and the percentage of vacant rental housing stock. This makes a valuable guide for anyone keen to ensure that they are investing their money in a profitable region of the UK. And its results prove that the buy to let market is still delivering strong financial returns, even as we enter into a recession.
Resources
[1] https://cmswealth.co.uk/the-top-5-cities-for-buy-to-let-investors/
[2] https://www.aldermore.co.uk/about-us/newsroom/2021/12/bristol-knocks-manchester-off-top-spot-as-best-city-for-buy-to-let-investment/
