Hull has become a significantly profitable city for buy-to-let landlords – attracting average capital gains of 11.12% and rental yields of 4.65% per year.
LendInvest’s buy-to-let index ranked the city as the fifth best buy-to-let postcode for landlords in the third quarter of 2017, up from 33rd in the second quarter.
Ian Boden, sales director at LendInvest, said: “This quarter’s data supports the strong market sentiment that the impact of price sensitivity in London and the South East isn’t being felt to the same degree elsewhere around the country.
“Cities such as Hull and Nottingham making significant gains in the Index (up #33 to #5 and #35 to #12 respectively) is encouraging, and points to competitive market conditions in those areas and higher than average levels of activity.
“Maintaining a balance between the types of tenure in our housing system is more important than ever.
“We would expect to increasingly see professional buy-to-let investors become cross-country landlords, and diversify their portfolios by looking beyond their local areas to find the best investment opportunities elsewhere around the UK and entering alternative asset classes.”
The top 10 areas for investors in order of ranking are Luton (#1), Colchester (#2), Manchester (#3), Rochester (#4), Hull (#5), Stevenage (#6), Romford (#7), Southend-on-Sea (#8), Ipswich (#9) and Ilford (#10).
Out of the top 10 rental yields were particularly strong in Manchester (6.04%) and capital gains were best in Colchester (13.02%).