Wed, 23 Jan 13
Bootle is the best buy-to-let hotspot in the UK, according to Home.co.uk.
The UK property search engine compared buy-to-let locations across the UK in terms of typical returns (gross) on capital invested. Statisticians from the website worked out the yields in hundreds of UK towns by comparing the asking prices and market rents for 2-bedroom properties, finding that the Merseyside town provided the best returns for investors, with yields of 8.3 per cent per annum.
Plumstead came in second place, with yields of 7.9 per cent, while Scotland’s Dundee and East Kilbride made up third and fourth. London accounted for four of the top 10 buy-to-let hotspots, with Plaistow, Newham, Dagenham and Camberwell rounding out the top ten.
But the worst letting locations in terms of gross rental yield were also in the UK capital, with poor returns dominated by the most expensive parts of London (Charing Cross, The Strand, Soho, Knightsbridge, South Kensington, Bloomsbury, Chelsea, Holborn, Mayfair & Belgravia) with typical rental yields between 2.4% and 3.3%. Yields in these locations have fallen by around 33% over the last two years.
'Investors in the rental property market really need to research their chosen location carefully in order to maximise potential yields,' commented Doug Shephard, Director at Home.co.uk. 'These top gross rental yield locations are highly attractive to buy-to-let investors, however many other locations are not.'
See also: Rents
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