The Top 5 Places to Buy-to-Let in the UK

While there’s no doubt that the uncertainty of Brexit, rises in stamp duty and changing legislation may all have contributed to a tricky time for both buyers and sellers of homes across the UK, there’s good news to share.

If you’re a potential or existing landlord looking to invest in a buy-to-let (BTL) property, there are a whole range of different locations where you can feel confident you’ll see a strong return on your investment. Here, in brief, are the top places to buy-to-let across the nation, according to the most recent Buy-to-Let Index Report from lendinvest.

Colchester

Consistently within the top three places to buy-to-let in the UK, Colchester is once again the number one place to invest. While its rate of capital growth has slowed, in line with the rest of the UK, its rental prices are steadily increasing, which makes it a pretty appealing option for BTL landlords.

The first city (and capital) in Roman Britain, this Essex gem has a rich history dating back over 2000 years. It also has outstanding rail links to London Liverpool Street, making it a popular choice with commuters looking for some welcome fresh air: the borough covers more than 135 square miles of scenic Essex coast and countryside. Colchester ranked highest for rental price growth (6.5 per cent), which is 3.32 per cent higher than the next contender…

Stockport

Next up is Stockport, which has climbed an impressive 18 places within just five months (#20 in June 2018), perhaps due to its proximity to Manchester, which continues to flourish thanks to increased recent investment. Stockport has enjoyed rental price growth of 3.18 per cent and, like Colchester, it boasts some great train connections. Residents can be in Manchester in as little as 9-17 mins, Warrington in 36 mins, Liverpool in 70 mins and London Euston in an impressive 2 hours. For BTL landlords “there are plenty of reasons to view the Stockport property market as one with investment potential”, according to lendinvest

Manchester

Hot on Stockport’s heels is the city of Manchester itself. Home to some 99,000 students across four universities (University of Manchester, Manchester Metropolitan University, the University of Salford and the University of Bolton), the Manchester area has one of the UK’s largest student populations in the UK (not to mention in Europe). It’s also increasingly popular with young families who want to enjoy city living but for less than this would cost further south.

Birmingham

The city of Birmingham sits in fourth place, attracting increasing numbers of renters, many of whom are, again, looking for an alternative to London living but without compromising on the perks of urban life. With trains arriving into the capital in as few as 73 minutes, Birmingham is an option for commuters as well as those who want to work locally.

According to Talk Business,”the activity of distribution warehouses in the surrounding regions is also attracting individuals taking part in the business to relocate to Birmingham and rent properties”. Like Manchester, it’s also home to thousands of students across four separate universities (Aston University, Birmingham City University, Birmingham University and Newman University).

Canterbury

Last but by no means least is the cathedral city of Canterbury in Kent. Steeped in history, the city not only boasts high rental yields, but it also leads in lendinvest’s report into capital gains (at an impressive 7.83 per cent). With good rail links to London on the one hand, and easy access to the north Kent coastline on the other, Canterbury is fast becoming popular with renters – definitely a location that BTL investors should be stopping to consider.

So it’s not all doom and gloom! Whatever the next few weeks and months have in store for the UK as a whole, BTL landlords have an opportunity to invest in up and coming areas across the nation where renters are taking up residence in their droves. If, of course, you’re also looking to benefit from outstanding cover (and offer your tenants the many benefits of deposit-free renting at the same time), you can always drop the flatfair team a line at info@flatfair.co.uk to see how we can help.