Salford, Manchester and Leeds in top 5 BTL hotspots

This month we really are tooting the North West’s trumpet… but it’s deserved! In a list of the most profitable buy-to-let cities for landlords in the UK, Salford came first followed by Manchester and Leeds.

What makes a good buy-to-let hotspot for landlords?

You might be wondering what makes these cities so special, and individually, there are so many factors, but here are some of the key traits of a great BTL hotspot.

·         Investment/business in the area

·         Strong yields

·         Capital growth

·         High tenant demand

Cities, and urbanisation in the wider sense, create a more efficient way of life which in turn, attracts business and those looking for job opportunities. This is certainly something all 3 of these cities have with UK headquarters for companies such as Asda, BBC, Kellogg’s and Siemens relocating to them.

Locations like this drive high tenant demand and as a result, property prices are increased but so are rental rates. The high tenant demand drives monthly rental standards up, much like we are seeing now following the property freeze. This increases average yields, ensuring you, the landlord, will always come out on top. While the UK’s average yield is currently 3.53%, Manchester is 5.55% and Salford is much higher at around 7.5%. What’s more, capital growth is a key factor in a long term BTL investment and Yorkshire is forecast to see property increases rise by 21.6% over the next 5 years.

It’s safe to say that no matter which of our branches you sit with, you have picked a great location to invest in, and you’re with the best team!