Research carried out by a property investment marketplace has discovered that a new north-south divide has opened up in the UK, with landlords in the north of England enjoying far better returns than landlords in the south.
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Property Hot Spots
All ten of the top buy to let hotspots are in the north. Stoke-on-Trent is top of the list with a magic combination of cheap house prices, low local salaries, and good rental returns. The average property in Stoke-on-Trent is only £117k, so all you need is a £29k deposit to buy a property on a 75% LTV mortgage. With an annual rental yield of 5.67%, this makes Stoke very attractive.
Oldham is second and Liverpool third, with Leeds, Middlesbrough, and Newcastle not far behind.
Low Rental Yields in the South
In the south of England, the situation is very different. Poole is at the bottom of the list. There, the annual rental yield is only 1.94%, so it is not a good investment choice for landlords. Central London is second, followed by Sevenoaks in Kent. Cambridge, Oxford, and Winchester make up the rest of the top five.
A combination of high property prices and weak rental yields has made many southern towns and cities a poor choice for landlord investors.
Savvy landlords should look for properties where demand is lower, as prices will be more affordable. It pays to do some research before investing in rental property or you could end up being stuck with a low yield property.