Britain’s best buy-to-let investment locations for a high yield
Research by nationwide buy-to-let specialist, Sequre Property Investment, has revealed which major cities are home to the largest level of high yield rental homes, as well as which property type presents the best opportunity for a robust buy-to-let return.
Sequre Property Investment analysed current market stock looking at the level of high yield investment opportunities available across 18 major cities across the nation.
High yield hotspots
In terms of the sheer availability of high yield stock on the market, Nottingham is the nation’s high yield investment hotspot. The city accounts for 21% of all property investment opportunities currently on the market offering a high yield opportunity.
Cardiff ranks second, accounting for 16% of all high yield investment opportunities, with Newcastle (14%) and Southampton (11%) also offering an abundance of high yield investment options.
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 by Sequre Property Investment, although this dominance does range from 94% of the high yield market in Bristol to 31% in Nottingham.
However, in Liverpool, Manchester and Swansea, terraced homes account for the largest proportion of high yield market share, while in Birmingham it’s semi-detached homes and in Bournemouth, detached homes rank top.
Sales director at Sequre Property Investment, Daniel Jackson, 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.”
| Table shows the proportion of high yield investment opportunities in each city, how these are broken down when looking at property type and the average cost of investment | ||||||
| Location | Average price – high yielders | Proportion of all high yield investment properties (all locations) | Flat % | Terraced % | Semi % | Detached % |
| Nottingham | £201,013 | 21% | 31% | 18% | 27% | 24% |
| Cardiff | £198,284 | 16% | 54% | 29% | 8% | 8% |
| Newcastle | £172,888 | 14% | 64% | 17% | 13% | 5% |
| Southampton | £210,645 | 11% | 66% | 16% | 12% | 7% |
| Leeds | £204,385 | 8% | 51% | 27% | 15% | 8% |
| Liverpool | £161,918 | 6% | 14% | 56% | 25% | 5% |
| Glasgow | £125,858 | 6% | 87% | 5% | 3% | 5% |
| Birmingham | £264,032 | 5% | 15% | 34% | 40% | 10% |
| Bournemouth | £315,722 | 4% | 29% | 5% | 14% | 51% |
| Manchester | £215,065 | 4% | 37% | 44% | 16% | 3% |
| Swansea | £143,214 | 3% | 33% | 43% | 18% | 6% |
| Bristol | £328,775 | 2% | 94% | 4% | 0% | 1% |
| Bradford | £93,445 | 1% | 86% | 0% | 3% | 11% |
| London | x | x | x | x | x | |
| Sheffield | x | x | x | x | x | |
| Portsmouth | x | x | x | x | x | |
| Plymouth | x | x | x | x | x | |
| Edinburgh | x | x | x | x | x | |
| Data sourced from PropertyData and based on a sample of 4,364 high yield property investment opportunities across all cities | ||||||
