Looking to make your next investment? These UK towns and cities offer great value for money and fantastic returns...
Earlier this year we reported on the UK’s Buy-to-Let Hotspots 2021 which included tips on the places that offered the best returns for investors. In this article, we dig a little deeper, to find the areas that might not be the first name on everyone’s lips but still produce a reliable dividend for those that buy and let property there.
In this list you’ll find a couple of safe solid bets and four up and coming picks - just to keep things interesting.
A former fishing village, Hartlepool has been regenerated and modernised in recent years. Property prices here are very investor-friendly; the average home costs £139,390 and rental yield is around 7%. You’ll need to act quickly as it may not be long before the whole world knows.
In addition to its renowned history and culture, affordability is a big part of what makes Nottingham attractive. The average home here sells at around £138,44, far below typical house prices in London, Manchester, and Brighton. Due to the low prices but increasing rental demand, landlords in Nottingham can expect an average yield of 4% and in the most desirable areas even more - in the NG7 postcode yield is around 9%. Get to it!
One of our safe bets - Leeds is a good, solid location for investment. If you’d bought in Leeds last year, you’d already be up nearly 5%. The huge South Bank regeneration scheme is on the verge of being started thanks to a proposed city centre park. Plus, there are billions of additional pounds being invested across the city - including an HS2 station with a line running between Manchester, Leeds and York. So, as you can see, there are plenty of reasons to invest in this vibrant city.
North of the border there are ample opportunities for prospective landlords and most enticing of all is Kilmarnock. Across this Ayrshire town, there are respectable yields on offer, particularly in the KA1 postcode area which offers an 8.31% return. Considering the average property price here is under £70,000, this is a great location for landlords who are looking to get started or acquire new units on a budget.
In Wales, Cardiff is often quoted as being a great place to buy-to-let. But just down the way in Newport, there are equally ample prospects for landlords. The average asking price here is £82,000 and monthly rent averages at £395. In the most profitable postcodes, the yield on a let in Newport is around 6%. Plus, the fish and chips here are second to none.
If you’re looking for something in the vicinity of England’s capital, Romford is the perfect place to invest. Its main appeal, apart from the open green spaces, great local schools and transport links is that it’s less than 20 miles away from Central London. As you would imagine, this makes it very popular with commuters and young families who enjoy having easy access to the city. The average house price in Romford is £301,995 with a rental yield of around 5%.
Northampton offers great opportunities for those looking to make a long term investment in property. Demand here is continually growing (homes sell quicker than anywhere else in the country) so the cost of entry is a little higher. However, the lettings market is very reliable with the average rent around £780pcm.
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