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Where Is Best To Buy To Let?

Published: 20 August 2013
Author's Avatar
Author: Carl Shave - CEO and co-founder
Last updated: 26May2024

Buying a property to let can be a lucrative investment, but careful consideration of all your options can help you yield even greater results. Luckily, banking chain HSBC carried out an in-depth analysis of the market earlier this year in order to find the most profitable buy to let hotspots in the country. Here, Just Mortgage Brokers brings you the results, in order to help our customers make a more informed decision. HSBC analysed the 50 UK towns and cities with the highest concentration of private rental properties. They considered first the percentage of rental housing stock in each area, the average price and average rent. From this, they calculated a gross rental yield, to help landlords easily understand what sort of profit they are likely to make in any given area.

The Overall Winner?

The surprising overall winner was Southampton, with house prices averaging at £138,311 and average monthly rent standing at £901, generating a rental yield of 7.82%. When taking into account that most savings accounts currently on the market in the UK only yield around 2-3% at best, the benefits of investing in property in this area become even more prominent. Southampton was closely followed by Blackpool, Kingston Upon Hull, Manchester, Nottingham and Coventry, all yielding over 7%. Some patterns were evident in the analysis, such as the amount of coastal towns falling into the top fifty. This may be due to holiday rentals and seasonal jobs. Blackpool was highest rated beach town, falling at number two, but Portsmouth, Cardiff, Bournemouth and Brighton and Hove all featuring within the top twenty and many other coastal areas made an appearance in the list. London didn’t fair particularly well, probably due to it’s high average house prices, but a number of London areas made an appearance, with Southwark, Newark, Enfield and Brent appearing within the top twenty. Choosing the area is just one important aspect of a buy to let mortgage, and can require careful consideration in order to yield the most success. As an independent broker, Just Mortgage Brokers can help. Call us on 0808 250 3094 or contact us online to find out what we can do for you.