UNIVERSITY CITIES OFFER BEST BUY-TO-LET YIELDS
EMBARGO 00.01 MONDAY 18TH JUNE 2018 New research by TotallyMoney suggests university cities offer the highest return on buy-to-let investments, with Liverpool coming out on top. https://www.totallymoney.com/buy-to-let-yield-map/ The Free Credit Report and comparison specialists looked at over 580,000 properties across England, Scotland, and Wales to rank each postcode, from best place for buy-to-let yields to worst. The top five postcodes Liverpool postcodes L7 and L6 take first and second place, with average rental yields of 11.79% and 11.59% respectively. The postcodes are close to two of Liverpool’s three universities, making it a potential hotspot for buy-to-let investors. Middlesbrough’s TS1 town centre postcode, home to Teeside University, takes thirds place, with an average rental yield of 10.94%. The area also has an average asking house price of just over £65,000, making it one of the most affordable buy-to-let hotspots. Edinburgh postcode EH8 comes fourth, with average yields of 10.62%. It’s home to the University of Edinburgh, which is the sixth best in the UK, according to the Times Higher Education World University Rankings. With a student population of 100,000, Manchester also performs well. M14 has average rental yields of 10.08% and is home to Manchester Metropolitan University. London’s low lettings London was one of the worst areas across Britain for buy-to-let yields, with north London faring particularly badly. Of all the London postcodes surveyed, five north London postcodes rank in the bottom 10, with rental yields as low as 1.5%. Landlords whose hearts are set on a buy-to-let investment in the capital should look to east London for the best returns. East Ham (E6), Plaistow (E13), Manor Park (E12), Chingford (E4), Stratford (E15), and Poplar (E14) all rank in the top 10 London postcodes for rental profits, yielding 4.81%, 4.52%, 4.3%, 4.11%, 4.1%, and 3.95% respectively. Outside of London, the worst performing area was Bournemouth’s BH14, which has average rental yields of 1.68%. Crewe’s CW12 comes next, with 1.74%. All postcodes in the 25 lowest yielding areas have average house prices of more than £300,000, which suggests more affordable house prices generate better rental yields. Based on the research, TotallyMoney has created an interactive map to help landlords spot the best areas to yield a profit. TotallyMoney’s Head of Brand & Content, Joe Gardiner, said “With students flocking to university cities year after year and looking for a place to live, it’s no surprise the student market is a dependable one for landlords. “Since so many students are looking for accommodation, landlords may use this as an opportunity to drum up competition between them. “But, due to the tenant fee ban, changes in mortgage tax relief, and tighter buy-to-let lending criteria, rental profits are now being squeezed more than ever. To maximise their returns, landlords need to be savvier — and that’s where our map and mortgage comparison tool can help.” For more information on the best and worst performers, visit: https://www.totallymoney.com/buy-to-let-yield-map/ About TotallyMoney TotallyMoney has been championing fairer and better consumer credit since 2007 by helping customers make smart borrowing decisions. We won Best Free Credit Report Provider in the 2018 Moneynet Personal Finance Awards and, in under 12 months, our Free Credit Report has already put 500,000 customers in control of their credit data. Plus, we pioneered soft searching and eligibility scoring to reduce customers’ risk of being rejected for credit. Our services are designed to simplify personal finance, helping customers improve their credit rating and find the best products to meet their needs. To date, our platform powers the likes of Confused.com, Noddle, and ClearScore to name but a few.
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