With many financial changes affecting the buy-to-let sector, most landlords will be looking to achieve the highest rental yields possible. So where should you invest?
Where to Find the Highest Rental Yields in the UK
A buy-to-let investment search portal, Buy2Let, has produced an interactive map based on a selection of data from the Royal Institution of Chartered Surveyors, LSL Property Services, LendInvest, Move With Us, HomeLet and Hamptons International.
The map acts as a guide to which locations in the UK will offer the highest rental yields by 2020.
The figures show gross rental yield and cumulative yield growth between this year and 2020.
Unsurprisingly, Buy2Let believes that yield percentages will be the greatest in the North of England and the Midlands in four years’ time.
For the highest rental yield growth, the firm suggests investing in Liverpool, Manchester, Leeds, York and Birmingham. Alternatively, Sheffield, Nottingham, Leicester, Coventry and Carlisle are set to perform well.
If you are thinking of investing in the south, Buy2Let highlights Reading as a hotspot for rental yields, alongside Cardiff and the surrounding areas.
In London, the greatest rental growth areas are Stratford, Hackney, Whitechapel and Canary Wharf.
At the opposite end of the scale, Plymouth, Great Yarmouth and Bath have some of the lowest average rental yield percentages in England and Wales, despite offering high rental values. If you have rental properties in these areas, it may be worth finding a more lucrative investment further north.
While the figures use a wide range of data to determine the rental yield hotspots, the buy-to-let sector continues to face many changes. Alongside the 3% Stamp Duty surcharge – introduced on 1st April – landlords will face reductions in mortgage interest tax relief from next year.
For details on how these financial changes will affect your business, we have advice from expert Paul Mahoney, of Nova Financial: /contrary-to-popular-belief-buy-to-let-is-not-dead-insists-finance-firm/
If you are concerned about rental yields on residential property, it may be a good idea to consider commercial units, as many landlords are already doing: /residential-landlords-moving-away-traditional-buy-let/