Choosing the location of your buy-to-let investment is one of the most important decisions you can make as a landlord.
Distance to desirable amenities such as shops, transport links, local schools/universities and restaurants will always be key considerations for landlords, but in order to choose the perfect location be sure to have your key tenant type in mind. Do you want to target young professionals? If so, a high-end apartment in a city centre close to shops and restaurants is a must. However, if you want to target students, investing in Purpose Built Student Accommodation with a range of on-site amenities and communal areas close to local universities is advisable.
As well as local amenities on the doorstep, another primary consideration for landlords is how well the local market has fared. Properties in areas of high rental demand are always popular with landlords.
Therefore, where would be the best place to invest in buy-to-let?
For buy-to-let investors looking for good capital returns and reliably high yields, the North of England is the place to look. Consistently outperforming both the national and the London averages for house price growth and rental yields, the Northern Powerhouse regions offer prime buy-to-let properties with substantial investment potential and a favourable entry regions. Some standout Northern cities include:
Manchester is the UK’s second city and the local property investment scene has skyrocketed in recent years. Named as a UK Buy-to-Let Hotspot in consecutive years by HSBC, Manchester offers ideal conditions for investors: high rental yields, great potential for capital appreciation and an ever-increasing number of tenants looking for high quality accommodation. Click here to view all current property investments in Manchester.
Liverpool is extremely popular with residents and tourists alike and the city is seeing more and more young people flocking to Liverpool to live and work in this vibrant city. Liverpool has seen high levels of inward infrastructure investment in recent years - such as the Liverpool ONE shopping complex and the regeneration around Liverpool Lime Street Station - which have helped to kick start the economy and confirm the city’s status as a business centre. Click here to learn more about investment in Liverpool.
Leeds is a national powerhouse with a booming economy. The Leeds property market is one of the UK’s most buoyant with the city centre boasting an occupancy rate of over 99% and demand well eclipsing this figure. Furthermore, property values have soared as a result of this heightened demand, with JLL predicting house prices will grow in the city by 22.8% by 2019. Click here to find out more about Leeds.
Much like the nearby cities of Manchester, Liverpool and Leeds, Sheffield is proving incredibly attractive to modern businesses and the economy is growing at a considerable rate in response. Sheffield has evolved from the world-leading steel manufacturer it once was to become a leading light of modern digital and technology industry. More and more tenants are arriving in the city but there is currently a lack of high quality rental accommodation to be had, making Sheffield a fantastic buy-to-let investment opportunity. Click here to find out more about Sheffield.
No matter where you decide to invest, be sure to conduct comprehensive research, using sources like Zoopla, Rightmove and even local estate agencies to find out typical yields in the area, what kind of tenant demand exists, and how much properties are worth.