The past year has seen the UK property market in the Doldrums, but the buy to let market has proved to be about the best performing sector nationwide. As with all property purchases, choosing the right location to invest in a buy-to-let property is vitally important if you want to make the best returns on your money.
Before you buy, doing some thorough research is always recommended, and that means tight budgeting, hours of house hunting and careful planning for the type of property you want to buy.
Factors to consider
It might sounds painfully obvious, but you need to make your investment in an area that people will want to live and stay in. Higher demand equals higher rent, while keeping tenants in a flat for two or three years beats contending with voids. These areas are often characterised by a number of factors, such as transport, schools, location, student density, goods and services and so on.
In order to really find the right property, you need to decide on your target market and what factors they value. This will make choosing a property much easier. If you’re aiming to attract families for example, you may want to find a spacious property that is located near good schools, or one that has a garden. If on the other hand you want to appeal to students, finding a well located trendy location that has access to high speed internet is always important. You can find out this information relatively easily when you compare broadband as you can often carry out post code checks.
Cost vs Rent
The best buy to let locations tend to be a combination of low average property price and financial return from investment i.e. rent. It’s therefore of little surprise that locations such as Blackpool have been shown to be highly profitable locations for buy to let investments. The average home costs £160,000 and the average monthly rent is roughly £720 – offering a gross yield of over 5% yearly. Finding locations that offer the best return on investment is therefore paramount. Many of the best locations to rent are in emerging and fashionable locations such as east London and Manchester.
Up and Coming
Areas in large cities that have a changing population always prove to be a wise investment, for example less affluent areas that are experiencing redevelopment as finances grow. Being close to a University is always a wise investment as the student rental market is proving to be a great recession proof investment.
Here are the top 10 locations in the UK for buy to let properties to help you get started.
Kingston Upon Thames
South East London