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MAIL ON SUNDAY Buy to let - rental hotspots

Journalist: Sarah Davidson, Freelance

ended 30. August 2023

Thanks to all who came back to me on the previous alert. 

Looking for some comment on why BTL yields are particularly strong in some parts of the country.

  1. Specific examples of location and reason it's worth investing there - detail please. Eg, if you're looking to let to students then these towns are still offering good yields + where is the student area in that town + what are house prices there like and what sort of rent could you expect + is there growing competition from larger purpose-built accommodation providers….
  2. I've got some data showing that commutable areas around Glasgow are yielding around 9 per cent gross - why is that? Is it a case of house price to rent ratio only, as opposed to there being strong tenant demand? 
  3. If you've got any insight into the rental market in these areas specifically, please share them….
  4. West Dunbartonshire, Renfrewshire, East Ayrshire, North Lanarkshire, Sunderland, Inverclyde, Middlesborough, Clackmannanshire, Burnely and Hartlepool
  5. Lowest yielding places are the obvious ones - Kensington & Chelsea, Richmond, New Forest, Derbyshire Dales, St Albans - if you have any local insight into these rental markets, please share - tenant demand, supply, what sort of property is most in demand etc.

Thanks!

 

3 responses from the Newspage community

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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
We are currently increasing our investments in all the major cities of Kent. Being a home county and with direct links to London and the coast, Kent is the hot spot of new employment generation and economic activity. There are holiday makers and families alike that are moving to towns like Maidstone, Ashford (which also has direct train links to Paris) and Ramsgate (lovely coastal town).

Our investment outlook is long term and we believe there has never been a better time to buy properties than now, in the past 15 years. As long as you are not over leveraged and have a clear strategy as to what you want to do with the property you buy, there are bargains galore.

We are in the people business, the property is only a by-product. In particular, we target three Ds when looking for bargain deals - Death, Divorce, and Debt. In each of these cases, the property must be sold and with the market being a complete buyer's market, there is a lot of potential for cashflow and capital gains
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Ashley Thomas
Director at Magni Finance
Prime London will always have low yields. However, in the past, these have had one of the strongest for capital growth. London is still seen as a resilient and profitable market, especially for foreign investors.
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Nicola Smith
Group Residential Director at Complete Prime Residential
Student houses are still in very high demand. We operate in Leeds, Liverpool, Birmingham and Manchester and have found that new-build developments in these city centres located within a 5-minute walk to a University or Campus continue to attract international and wealthier students – these students are willing to pay above-average market rent to secure a property within a safe building (24-hour concierge). We still see the average student looking to secure room-only rentals in HMO large properties which are located further out of the city in areas such as Cheetham Hill and Moss Side in Manchester and Woodhouse in Leeds.