Nottingham now rivalling Liverpool as buy-to-let hotspot

Mortgage Introducer

January 26, 2018

Nottingham is now rivalling Liverpool as a UK buy-to-let hotspot, as they both offer yields of 6.2%, analysis from mortgage broker Private Finance has found.

Other strong areas in terms of yields are Cardiff (6.0%), Southampton (5.9%) and Greater Manchester (5.9%).

When working out which were the hotspots Private Finance took into account average house prices, average mortgage costs and average rents.

Shaun Church, director of Private Finance, said: “Finding the right buy-to-let location is a careful balancing act.

“Too large an initial investment makes it difficult to achieve a healthy yield, but landlords must also be confident that property values will appreciate at a higher rate than mortgage borrowing to achieve a long-term profit.

“Strong rental demand is also key to prevent lengthy void periods that can damage affordability.

“While there has been some movement in the top 10 buy-to-let hotspots, larger cities and university towns tend to offer the greatest opportunity for investors as they offer the highest rental demand.”

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