Stoke-on-Trent has been named as the UK's buy-to-let 'sweet spot'.
Analysis of data from Home.co.uk by property crowdfunding plaform Property Partner shows that the Staffordshire town provides landlords with the best returns and affordability.
Oldham came in second place, while Liverpool, Leeds and Middlesbrough made up the top five.
The analysis shows a strong north-south divide. All of the top ten buy-to-let 'sweet spots' are located in the north, while all of the bottom ten are situated in the south.
Property Partner’s study ranked Britain’s 100 major towns and cities, taking into account the average income, average property price and average rent in each area.
“We have always been at pains to point out to investors that prime locations such as Kensington and Chelsea can offer some of the lowest yields available, because prices have raced ahead while rents have failed to keep pace," says Dan Gandesha, founder of Property Partner.
“It just goes to show, you shouldn’t always follow the crowd and the right investment could be on your doorstep where there is far less overall demand.”
UK’s top ten buy-to-let sweet spots:
|
Town/City |
Average Annual Income |
Average Property Price |
Average Rent per year |
House Price/ Earnings |
Annual rental Yield |
Yield/ (House Price / Earnings) Score |
|
Stoke-on-Trent |
£26,250 |
£117,586 |
£6,672.00 |
4.48 |
5.67% |
1.27% |
|
Oldham |
£28,361 |
£125,307 |
£6,840.00 |
4.42 |
5.46% |
1.24% |
|
Liverpool |
£29,500 |
£162,373 |
£9,672.00 |
5.50 |
5.96% |
1.08% |
|
Leeds |
£31,860 |
£206,544 |
£14,292.00 |
6.48 |
6.92% |
1.07% |
|
Middlesbrough |
£27,810 |
£130,798 |
£6,540.00 |
4.70 |
5.00% |
1.06% |
|
Newcastle-upon- Tyne |
£31,788 |
£170,892 |
£9,552.00 |
5.38 |
5.59% |
1.04% |
|
Stockton-on-Tees |
£30,134 |
£141,807 |
£6,816.00 |
4.71 |
4.81% |
1.02% |
|
Gateshead |
£29,011 |
£168,644 |
£9,756.00 |
5.81 |
5.78% |
1.00% |
|
Rotherham |
£29,276 |
£130,867 |
£5,640.00 |
4.47 |
4.31% |
0.96% |
|
Rochdale |
£28,397 |
£165,110 |
£9,252.00 |
5.81 |
5.60% |
0.96% |
UK’s ten buy-to-let not-spots:
|
Town/City |
Average Annual Income |
Average Property Price |
Average Rent per year |
House Price/ Earnings |
Annual Yield |
Yield/ House PE Score |
|
Poole |
£31,533 |
£762,532 |
£14,808.00 |
24.18 |
1.94% |
0.08% |
|
Central London |
£40,310 |
£1,052,394 |
£33,132.00 |
26.11 |
3.15% |
0.12% |
|
Sevenoaks |
£40,316 |
£764,574 |
£18,936.00 |
18.96 |
2.48% |
0.13% |
|
Bournemouth |
£30,243 |
£524,945 |
£14,076.00 |
17.36 |
2.68% |
0.15% |
|
Cambridge |
£35,760 |
£581,344 |
£14,616.00 |
16.26 |
2.51% |
0.15% |
|
Oxford |
£35,090 |
£634,051 |
£23,640.00 |
18.07 |
3.73% |
0.21% |
|
Winchester |
£42,682 |
£595,090 |
£17,148.00 |
13.94 |
2.88% |
0.21% |
|
St Albans |
£52,759 |
£620,092 |
£15,828.00 |
11.75 |
2.55% |
0.22% |
|
Chelmsford |
£38,730 |
£444,198 |
£11,256.00 |
11.47 |
2.53% |
0.22% |
|
Brighton |
£33,774 |
£509,747 |
£17,640.00 |
15.09 |
3.46% |
0.23% |
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