Manchester and Liverpool listed in top 10 buy to let hotspots
The highest buy to let returns
Research conducted by HSBC has shown both Manchester and Liverpool to be amongst the top city hotspots for buy to let returns.
Manchester, which was ranked as 4th on last year’s hotspot list, has recently been revealed as the 2nd best city for the highest buy to let returns with an average yield of 8%.
The research comes after a strong summer of investment for Manchester, as it was reported investors had invested heavily into the city and the North West of England.
Liverpool was listed as number 9 for the second consecutive year with average rental return of 6.5%. Due to public and private investment in recent years of over £4 billion, Liverpool has since grown economically faster than any other city outside of London, reports have shown.
Many parts of London ranked very low for rental yields, with areas such as Hammersmith and Fulham only reaching about 3.5%.
Figures published by RightMove at the end of 2014 also showed the London property market slowing down as a whole. Asking prices for houses in the capital have dropped £30,000 in the last 12 months.
Comments from Sequre
Graham Davidson, Managing Director of Sequre Property Investment, comments “There is a common misconception with some buy to let investors assuming they can get better returns from property in London. However, this is not the case and hasn’t been for a long time, as these latest figures prove.”
“Manchester and Liverpool are some of the best cities in the UK for buy to let. Both cities benefit from strong rental yields and capital growth, so investors can make a good profit in these areas.”
“Changes to the stamp duty will only continue to affect the London market going into 2015. The high house prices will only be exacerbated by the extra tax investors will now have to pay. And since returns in the capital are notoriously low, it only makes it more likely that investors will continue to look to the North.”