Number one: Oxford
Darren Meehan, Director, Bright Money Independent Mortgage Brokers, said:
“Oxford has always had a strong demand for rental properties, due to Oxford Brookes University, The University of Oxford and the many hospitals. The level of professional renters is attractive due to the low voids for owners, long tenancies that professionals take, and the properties tend to be well looked after.
“With the large volumes of new housing stock being built all over Oxfordshire, such as Didcot, there are a lot of new opportunities for investors. These new-builds outside the City Centre are more affordable to investors and they also target the commuters, so Oxfordshire really does have something for all budgets.”
Number Two: Manchester
Richard Ignatowicz, Director, Mortgage Savers, said:
“Manchester is currently regarded as one of the top BTL hotspots in the UK - it was primarily put on the investment radar due to the BBC moving to Media City in Salford Quays. This attracted a flood of southern and international investors and resulted in Article 4 being imposed in November 20183.
“Having recognised the excellent returns, investors are now seeing other parts of Manchester experiencing a ripple effect, such as Ashton and Oldham, which are served by the Metro and within easy commuting distance to the City centre. HMO conversions are especially popular and currently providing double digit returns.”
Number three: Edinburgh:
Randal McLister, Head of Mortgage Services, Condies Accountants & Advisors, said:
“Edinburgh's buy to let market has and will continue to be strong due to the diverse nature of the city. As a landlord you have the ability to either single out a particular tenant base or diversify depending on the season (or the properties you have in your portfolio). The three main tenant bases are made up of the people that call Edinburgh home, the ever growing student population, and the year round festival goers. All three yield well for landlords and this alongside strong capital growth makes investment property in Edinburgh very attractive and why there has been so much inward investment here in recent years.”
Number four: London
Andrew Montlake, Managing Director of Coreco, comments:
“Despite the political landlord bashing that has been going on recently and the associated tax changes that many landlords have been struggling to get their heads round, the death of the Buy to Let landlord has been much exaggerated.
“Even in London, where yields are lower than other areas of the country, demand for rental property continues to make letting a property an attractive prospect for many landlords. The key is to make sure you first obtain independent tax advice to fully understand the changes that have occurred in the market and to help make a decision whether it is best to purchase in personal names or within a limited company.
“The appeal of London as an area to live and work has not changed despite the threat of Brexit and its relatively high prices. Companies have continued to invest in the capital, such as Apple making Battersea Power Station its HQ, and it is still a thriving centre for finance and technology. Foreigners continue to see London as a great area to both invest, especially given the relative weakness of Sterling, and as a place to educate their children.
“In fact, in a post-Brexit world it looks as though London will continue to draw people in with no sign of its magnetic effect diminishing, and all these people need places to live and to rent. The future of landlords in London may look slightly different, with landlords having to work harder to attract the best tenants, but it still looks very rosy.”
Number five: Norwich
Jorden Abbs, sales director at CommercialTrust.co.uk, said:
“Norwich is a strong commercial and educational centre and it is an hour and a half from London on the train. The city is surrounded by countryside and the beach is also just 40 minutes’ drive away.
“Norwich offers landlords a full breadth of property investment options. Student lets serve the University of East Anglia and Norwich University of the Arts, city centre HMO’s target young professionals, standard buy to let covers a full spectrum from family homes to luxury apartments, and with so much in and around the city, holiday lets also enjoy year-round appeal.
“Commercial property investment offers similarly diverse opportunities to residential. Finance, business services, science, manufacturing, agriculture, energy, engineering, digital and IT are all thriving industries in and around Norwich. As a result, whether you are entering the buy to let market for the first time, or building upon an established portfolio, it is possible to find a property to fit.”