The nine most profitable areas in the UK to be a landlord have been announced in the Buy To Let Index by online lending and investment platform Lendinvest.
Using historical purchase prices from the Land Registry and current average rental prices on property website Zoopla, Lendinvest created a list of the areas with the best annual rental yields (given as a percentage).
Areas all over the country make the ranking, especially those where house prices are low but demand to live there is still high.
There is also a notable correlation to the recent Brexit referendum, with only one area on the list voting to Remain.
“It’s very interesting that the top districts for rental yield, which are often found in the North East and North West, voted so overwhelmingly for Brexit," Christian Faes, Co-Founder and CEO of Lendinvest. She added that the referendum could also be influencing the rental market:
"Brexit may create opportunities for property investors, particularly professional and experienced ones. House prices are expected to soften, so some would-be buyers may put off buying. But they still need somewhere to live, which is good news for landlords. What’s more, if house prices do cool as predicted, then investing in property will become even more enticing."
Keep scrolling to see the best places to a landlord in the UK:
T-6. Sunderland — 5.6%. Starting way up north we have Sunderland, where house prices are cheap, but rents are comparatively profitable. Property prices have fallen since 2010, though, so landlords should think twice before selling up just yet.
T-6. Cardiff — 5.6%. Over to Wales' biggest city. Cardiff's high student population ensures that rental prices always give a good return. Capital gains are also healthy too, so there's even more reason to buy here.
T-6. Northampton — 5.6%. In the heart of the midlands, Northamptonshire gives landlords great returns on rent, and a decent property value rise of 2.6% in the last six years.
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