Buy-to-let investors should look at the North West – Rightmove

Ryan Bembridge

January 12, 2017

Rightmove has tipped buy-to-let investors to look at Merseyside and Lancashire in the North West of England where they can get yields of over 7%.

In Merseyside Bootle (9.3%) and Birkenhead (7.5%) offer significant yields, while in Lancashire Burnley’s yield is 7.2% and Accrington’s is 7.1%.

Rightmove recommended buying property that suits families or young professionals looking for long-term rental contracts.

Best rental yields found up North

Sam Mitchell, head of lettings at Rightmove, said: “Investors looking for the strongest yields could consider investing in certain areas in the North West where both demand and yields are high.

“Those with a number of properties in the capital may find that tenants are more price sensitive, so setting realistic rent levels will be the key to avoiding void periods.

“In order to mitigate this, we would recommend landlords asking for longer tenancies to help secure a steady rental income over the next few years while they adjust to what the tax changes will mean for them.”

In 2016 rents in England and Wales saw an increase of 3%, down from 3.7% in 2015.

Rents rose considerably in the North West (4.4%) and Yorkshire and the Humber (4.5%), although they fell by 4.4% in Greater London.

Mitchell added: “We forecast that asking rents could rise by 4% outside London by the end of 2017, though in London prices are likely to stay flat.”

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