Average Rents Fall In May
Evaluation information exposed by Personal Money crowned Liverpool as the top location for buy to let property financial investment. The city was located to use rental returns of around 8 per cent after home mortgage expenses are considered.
Low average building acquisition rates of ₤ 122,283 coupled with strong average rental fees of ₤ 1,021 incorporated to use the high rental yield in Liverpool when compared to various other locations.
Nottingham can be found in a fair means behind in 2nd location, with an annual rental return of 5.6%. Third area was grabbed by Coventry, close behind Nottingham with average returns of 5.4%.
Greater Manchester at 4.3% as well as Portsmouth at 4.2% composed the top five locations to purchase buy to let.
The solid yields offered in these cities are believed to be influenced by strong university visibility, resulting in huge pupil rental demand.
Unsurprisingly, no London areas were in the leading 10, with only three southerly locations featuring. Portsmouth, Bournemouth and also Southampton once more have solid student need, as well as potential holiday allows.
Director of Personal Money, Shaun Church, commented: “It’s not only the residential property market that’s all about location, location, location. Investors should look for areas with strong rental demand. Larger cities and university towns generally have better performing rental markets. This will help to avoid lengthy void periods that can damage landlords’ profitability.”
“Investors may also want to stay away from areas with very high house prices. Although these locations can provide high rental income, a large initial investment can prevent investors from achieving good returns. When purchasing with a mortgage, landlords should keep in mind that the larger the loan, the higher their mortgage costs will be.
Now that tax relief on mortgage interest is being restricted, keeping mortgage costs down is particularly important. The good news is all landlords are benefiting from ultra-low mortgage rates.”