By +Eric Jafari
Southampton is the place to be for
buy-to-let landlords, according to new research from HSBC.
Out of 50 towns and cities with the highest concentration of
private rental housing, Southampton topped the list, enjoying
rental yields of 7.82 per cent. What's more, private rental
accommodation makes up a quarter of its housing stock and prices
Average rents stand at £901 per month in Southampton,
considerably higher than most cities in England and Wales. However,
it isn't the only place in England and Wales where conditions are
favourable for buy-to-let landlords. Blackpool, Hull, Manchester
and Nottingham are also prime spots for investment, thanks to their
relatively inexpensive property prices. These areas boast rental
yields of 7.81 per cent, 7.77 per cent, 7.60 per cent and 7.55 per
cent respectively. Coventry also performed relatively well, coming
in at sixth place with a yield of 7.13 per cent.
Surprisingly, London did not perform well, despite rented
accommodation being in high demand. According to HSBC, this is
because of the comparison between rental yields and property
prices. Values keep rising in the capital, pricing many out of the
market. However, Southwark performed relatively well, coming in
13th place overall. Nevertheless, the boroughs of Hammersmith and
Fulham and Kensington and Chelsea ranked in the bottom two places.
This is thanks to high initial outlay prices, generating returns of
just 3.42 per cent and 3.34 per cent respectively.
Peter Dockar, head of mortgages at HSBC, commented: "Buy to let
remains a good investment for those looking for above average
returns. Twenty-three of the top 50 areas offer yields above five
per cent, significantly more than is available from more
traditional savings options. However, it is clear there is a fine
line between a property in a desirable area, the rents that can be
achieved and the returns that can be yielded so it is key landlords
do their research as often the most popular locations may not offer
the best return."
22 April 2013
Buy to Let,HSBC,Rental Property Market,Rental Statistics