Buy To Let Updated:
Buy-to-let investors looking for lucrative returns from rental property should head to Birmingham, a new study has revealed.
The research, by property group Move with Us and Home.co.uk, revealed that the locations within the top ten delivered gross yields of between 8.7% and 10.6%.
It concluded that the highest yields are scattered widely across regions and are mostly located outside of Greater London.
Birmingham has three postal districts in the top ten, indicating that the city's rental sector presents significant opportunities for savvy buy-to-let investors.
Gross Rental Yield
At the other end of the spectrum, landlords could only expect returns in the region of 2% in more isolated areas of England and Wales, while large swathes of Greater London currently return an average yield less than 4%.
"Landlords looking to maximise yield will need to look outside of Central London," said Sean King, chief executive officer at Move with Us.
"Commuter belts to the west and east of London are clearly yield hot spots as renters look to access the capital's work and social opportunities without the cost of renting a Central London property."
Growing demand for rented property has provided the buy-to-let mortgage sector with a much-needed boost over the past couple of years.
This has meant product choice has improved considerably whilst mortgage rates have also been falling.
So if you're looking to invest in property, compare the top buy-to-let mortgages with Moneyfacts.co.uk.
Compare the best buy to let mortgages
Need more information on buy to let? Check out our 'Moneyfacts.co.uk guide to buy-to-let mortgages'
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