Buy To Let Updated:
Buy-to-let investors have been told Peterborough is the best area in England to invest in rental property.
The annual returns on a typical one, two and three-bedroom property in the town are higher than anywhere else, including London, according to new monthly analysis compiled by haart.
The data reveals that a buy-to-let investor purchasing a one-bedroom apartment in Peterborough, for instance, would expect a yield of 8.7% per annum whilst a two-bedroom apartment would generate a yield of 9.0% per annum.
A three-bedroom house would generate a slightly more modest 6.7% per annum.
Indeed, the East of England as a whole currently offers the best rental yields of all the English regions in which the estate agent operates.
This is closely followed by the East Midlands, South Yorkshire and then, in a surprisingly low position of fourth, London.
Less of a shock is the revelation that the capital remains one of the most popular areas of England in which to invest.
Indeed, yields ranging from 5% to 7% remain widely achieveable across many areas of the capital for one, two and three-bedroom properties.
"Whilst London and the South East have traditionally been the focal point for the majority of buy-to-let activity, we are starting to see investors focus more on other parts of the country, such as Peterborough, which thanks to rising rents, are offering prospective landlords annual returns of up to 9%," said Andrew Benn, managing director of haart residential lettings.
"It is a yield they simply wouldn't be able to achieve with other forms of mainstream investment."
The news comes shortly after it was revealed rents fell for a second successive month in December.
According to LSL Property Services, the traditional seasonal slump saw the average rent in England and Wales fall by 0.8% to £711 per month during December.
Yet despite the monthly decline, average rents remain 4% higher than a year earlier, thanks to tenant demand surpassing that seen in December 2010.
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