Investors scouring the market for buy-to-let property for sale are keen to know where the best rental potential can be found. In the past, landlords have often stuck to the south in order to find suitable rental property, particularly in and around the capital. However, according to an HSBC report, the best place to secure a great return isn’t necessarily in London, but actually further north – in Manchester.
Investment Properties for Sale – Manchester Rental Yield?
HSBC’s recent analysis of the buy-to-let market found that Manchester offered the highest rental yield of any city in the UK – of 7.93% on average. It also performed well in 2014 – marking it as a city that produces a relatively reliable rental income.
Part of the reason that Manchester offers such great potential for investors is its competitive property market. Investment properties for sale are still incredibly reasonable, especially when compared with the national property price averages. Unlike many other cities in the UK, Manchester experienced only a small increase in house prices from June 2014 to June 2015 – a diminutive jump from £104,244 to £108,870.
However, in spite of the cheap house prices, demand for rented accommodation is still remarkably high in the area. In fact, over a quarter of Manchester’s properties are privately rented, which shows how strong the market is. With annual average rents of £8,628, the rental market is booming – and now is the time for investors to explore the area in earnest.
Other Reasons to Invest in Manchester
There are other reasons why Manchester is definitely a city to watch. The city council have established five regeneration zones, which promise to breathe new life into Manchester – which in turn, will attract new residents.
It’s also home to the largest concentration of students in Europe, not to mention the largest regional concentration of professionals in the UK – which means more people actively seeking property to rent.
Additionally, the city has strong transport links to the rest of the country, plus the largest airport outside of the South-East. All of these factors in combination make Manchester an appealing prospect for those seeking investment properties for sale.
The High Performing North
Manchester isn’t the only northern city to offer excellent return on investment. In second place is Hull, where close to 20% of all properties are privately rented, and average rental yields are 7.81%. Close behind is Blackpool, where nearly a quarter of houses are rented privately, and landlords enjoy an average yield of 7.35%.
With Liverpool and Nottingham also featuring in the top ten, the figures seem to suggest that there are plenty of property investment opportunities in the north – and that the northern cities provide the perfect chance to develop a solid property portfolio with relatively low initial investment.
Investment Properties in London?
Of course, that’s not to say that the capital doesn’t offer excellent opportunities for those seeking buy-to-let property for sale. Although areas of London are prohibitively expensive, other upcoming areas offer excellent investment potential – such as Croydon, Whitechapel and Twickenham.
Further south, savvy investors are exploring the coastal cities, such as Southampton and Portsmouth. Both of these cities also feature in the top ten in terms of rental potential.
Buying a House at Auction?
There are a number of ways investors can increase revenue generated from their property – and buying a house at auction is certainly one of them. House auctions offer a genuine opportunity to find a buy-to-let property for sale at a greatly reduced price.
Alternatively, work with a specialist property investment agent (London or anywhere in the UK), who will be able to supply you with a list of suitable properties not currently available on the general market. These properties are often available at a highly competitive price.
The Buy2Let Shop
If you’d like some advice about property investment opportunities in London, Manchester or anywhere in the UK, talk to The Buy2Let Shop. We’ll help you locate a great property investment opportunity, plus offer advice on buying a house at auction. We even host regular property seminars, to help you gain solid understanding of the current house market.
To find out more, simply visit The Buy2Let Shop website today.