Which major cities are home to the largest level of high yield rental homes and which property type presents the best opportunity for a robust buy-to-let return? We take a look at the latest research.
High Yield Hotspots
According to new research that analysed current market stock looking at the level of high yield investment opportunities available across 18 major cities across the nation, in terms of the sheer availability of high yield stock on the market, Nottingham is the nation’s high yield investment hotspot. The research revealed that the city accounts for 21 per cent of all property investment opportunities currently on the market offering a high yield opportunity.
Cardiff ranks second, accounting for 16 per cent of all high yield investment opportunities, with Newcastle (14%) and Southampton (11%) also offering an abundance of high yield investment options (see table below).
Highest Yields By Property Type
When it comes to the split of high yield investment opportunities by property type, there is a clear winner across the majority of cities.
Flats account for the highest proportion of high yield rental stock across eight of the major cities analysed, although this dominance did range from 94 per cent of the high yield market in Bristol to 31 per cent in Nottingham.
However, in Liverpool, Manchester and Swansea, terraced homes accounted for the largest proportion of high yield market share, while in Birmingham it was semi-detached homes and in Bournemouth, detached homes ranked top.
As you can see from the table above, London, Sheffield, Portsmouth, Plymouth & Edinburgh did not receive a rank in the research simply because nothing listed was considered high yield based on the criteria.
Daniel Jackson, Sales Director at Sequre Property Investment, which conducted the research, commented: “You’d be forgiven for thinking that a high return buy-to-let investment has become a thing of the past and in some cities across the nation, you wouldn’t be far off the truth.
However, above-average returns can be secured if you know where to invest and what to invest in and so utilising expert guidance and market knowledge is key in the early stages when looking to build a successful property portfolio.
Knowing what kind of return a given location will bring is a start, but it’s also important to break the market down further, looking at which property type performs best, as well as the cost of investment. The market itself is incredibly diverse and so a far more strategic approach is required if you want to make a sound investment.”