A buy to let investment search portal has produced an interactive map based on a pull-together of research into the lettings market - with the claim that the end result is a guide to which locations in Britain will produce the highest yields in 2020.
The map, from Buy2Let, is based on data from the Royal Institution of Chartered Surveyors, LSL Property Services, LendInvest, Move With Us, HomeLet and Hamptons International.
The figures are for gross rental yield and show cumulative yield growth between this year and 2020.
Perhaps predictably, it shows that yield percentages will be healthiest across the North of England and the Midlands.
Liverpool, Manchester, Leeds, York and Birmingham are set to see the biggest rental yield growth over the coming years, followed by Sheffield, Nottingham, Leicester, Coventry and Carlisle.
In the south, it says Reading looks the best bet for rental yields, along with Cardiff and the surrounding areas. The biggest rental growth areas in the capital are around Stratford, Hackney, Whitechapel and Canary Wharf.
Meanwhile at the other end of the scale, Plymouth, Great Yarmouth and Bath may offer high rental values, but their average yield percentage is set to be among the lowest in England and Wales.
Do you agree? In today's volatile lettings landscape, facing not only market forces but also successive interventions by government, it may be difficult to make acuurate predictions - but it's a fascinating read and you can see it here.
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Interesting article. My only complaint is with whoever drew up the mapping and their reasons for drawing the boundaries as they did. My area of interest is Merseyside and North Wales and so took particular note of this part of the map. Three points to note are:
1. Wirral is part of Merseyside and should have been included within their boundary, not Clwyd. Wirral currently has some of the highest yields of anywhere in the country, even higher than Liverpool. Inclusion of Wirral within the Liverpool map would have pushed Merseyside to the very top of the returns table. Prices in Wirral are some 10- 15% lower across the range than comparables in Liverpool, but rents are almost identical for all property types outside the immediate Liverpool city centre area.
2. Wirral will be included within the area of the Merseyside metropolitan area under control of the new Metro Mayor from next year. So far, so dull. However, Wirral will then be subject to the policies of new Mayor, with devolved powers that affect housing, transport and inward investment. The Mayor is likely to be Joe Anderson, the current Labour party Mayor of Liverpool. You may or may not like some of his policies but he has a good track record of leveraging in funds for the city region. His policies for housing and transport in particular look credible, and he has a very good track record of representing the Liverpool region on the international stage, bring in more investment.
3. There are huge programmes of infrastructure improvements and inward investment on both sides of the Mersey that should push values on at pace equally in Liverpool and Wirral. These are being instigated by Peel Group (owners of pretty much the whole of both banks of the River Mersey) under the banners of Liverpool Waters and Wirral Waters. House prices do not yet reflect these major upcoming changes and so yields will remain high in the medium term until prices reflect these improvements to the Mersey basin area.
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