Liverpool and Nottingham come out on top for Buy to Let investments

Liverpool and Nottingham are the UK’s best performing property investment locations. Both cities enjoy average rental yields of 6.2 per cent once mortgage costs are taken into account. While Liverpool has retained its position since May 2017 – despite lower rental yields due to falling rental prices in this area – Nottingham has moved up [&hellip

Liverpool and Nottingham come out on top for Buy to Let investments

Liverpool and Nottingham are the UK’s best performing property investment locations.

Both cities enjoy average rental yields of 6.2 per cent once mortgage costs are taken into account. While Liverpool has retained its position since May 2017 – despite lower rental yields due to falling rental prices in this area – Nottingham has moved up from second position thanks to a £121 increase in average monthly rents.

In third position is Cardiff, with average yields of 6.0 per cent: Southampton and Greater Manchester make up the top five.  Coventry, Edinburgh, Leicester, Brighton and Bournemouth come next.

Across the top 10 hotspots, rental yields have risen by an average of 0.9 percentage points since May 2017.  There has also been a slight increase in the average mortgage rates towards the end of 2017 as November brought the first interest rate rise in 10 years to 0.5 per cent.

Many landlords across the UK will have seen their annual mortgage costs fall.  In some areas house prices have risen too quickly for landlords to benefit from falling rates. In the top 10 hotspots, Nottingham has seen the greatest increase in house prices since the analysis was last carried out (from £127,302 to £138,937 – an increase of 9.0 per cent).

The buy-to-let sector still faces many challenges and more landlords are seeking independent advice.

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