Manchester is the best city to be a buy-to-let landlord based on capital gains, transaction volumes, rental yield and rental price growth, LendInvest research has found.
Hull was the most improved city for landlords compared to three months ago after seeing increased investment in the area, resulting in higher yields.
Other cities which have become more profitable for landlords were Leicester and Birmingham.
Ian Boden, sales director at LendInvest, said: “This month we see good news for the North and the Midlands as Manchester finally secures its spot in first place in our index after a closely watched climb to the top.”
LendInvest’s study looked at 105 postcode areas around England and Wales.
Properties in Manchester had a yield of 5.5%, while homes in Colchester saw capital gains of 11.96%.
Landlords in Hull can now secure a yield of 4.20%.
Boden added: “Our biggest climber for the year was Hull.
“Since becoming ‘City of Culture’ back in January, Hull has received a new wave of confidence in the form of increased investment in the area, driven by higher rental yields.”
Enfield dropped from being one of the top 10 cities to be a landlord due to yields falling to 3.58%.
Yields in Durham were also particularly poor at 2.52%.
Boden said: “Elsewhere in the list, it’s great to see towns like Slough, Leicester and Cambridge ascend the list with such gusto.
“The location of these high climbers, ranging from Cornwall to East Yorkshire, shows how dynamic and ever-changing UK property investment can be across the country.”