- Our Services
- Residential Property Services
- Commercial Property Services
- Client Login
March 8, 2010
Unfashionable Towns Best For Buy-to-Let
Buy-to-let investors looking for the best returns should look outside trendy hotspots, with many less fashionable areas delivering far better returns, a study shows.
Buy-to-let investors looking for the best returns should look outside trendy hotspots, with many less fashionable areas delivering far better returns, a study shows. A report into the Top 100 towns for buy-to-let yields, compiled by property listing website FindaProperty.com shows that Blackpool is the postcode delivering the best returns in the UK.
The Holy Grail for property investors is a combination of low average property prices compared to rental returns and the report shows that locations not typically considered property hotspots make up a sizeable chunk of the top 25 postcodes.
Investors in property in Blackpool are looking at an average home asking price of £161,722 and monthly rent of £720, according to FindaProperty.com, delivering a gross yield of 5.34%. This represents a far more accessible investment than the next best postcode, which covers Kingston on Thames, where the average house price is £420,469.
While the top 20 is peppered with more fashionable locations, including Kingston, east London, Manchester, Central London and Twickenham, it is the more run of the mill locations that stand out.
Blackpool is joined by Kirkcaldy, Romford, Sunderland, Wigan, Blackburn, Bolton, Luton and Cleveland, all of which offer yields above 4%, but a far lower cost of purchasing a property.
Top 20 Buy-To -Let Postcodes
|Area||Postcode||Average Price||Monthly Rent||Yield|
|2||Kingston Upon Thames||KT||£420,469||£1,843||5.26|
|9||London (South East)||SE||£275,267||£1,060||4.62|
|43||London (South West)||SW||£763,873||£2,415||3.79|
|76||London (North West)||NW||£566,176||£1,616||£3|