London may have been claiming the house price headlines in recent years, but rather than focus their attention on the capital, property investors should turn their attention to Glasgow, Manchester, Birmingham, Sheffield and Liverpool.
That is the conclusion of research that compares rental returns to property prices, giving the locations that deliver the best yields on property. The LendInvest Buy-to-Let Index uses rents and asking prices from property portal Zoopla to identify the highest yields.
In a list of the top 20 buy-to-let hotspots for January 2015, Glasgow postcodes featured four times, as did Liverpool postcodes, Sheffield’s featured three times and Birmingham and Manchester postcodes twice.
Because of its high property prices, London was largely absent from the list, apart from the EC3 postcode, east of the city, which made the top three.
The figures also highlighted decent buy-to-let opportunities in Motherwell, Sunderland and Falkirk, Ireland.
In Sheffield, rental property is being snapped up faster than it can be provided, according to property investment experts Assetz.
In a financial climate where purchasing a property is out of reach for many consumers, people are relying on the rental sector to provide homes for them.
As with Liverpool, Sheffield has a large student population – the city is home to two of the UK’s largest universities – Sheffield University and Sheffield Hallam.
As a result, the city has a youthful population and demand for rental property is extremely high.
Top yield areas within Sheffield
S14 – 8% average
S2 – 7.9% average
S4 – 7.7% average
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