Being a landlord is something many dream about. The idea of building a property portfolio is an appealing one, with the potential to increase annual revenue while also providing a valuable asset. However, when it comes to being a landlord, it also takes a lot of time and expertise.
If you have decided that 2018 is the year to finally make that leap and invest in property, then you need to be prepared to do your research. After all, the yield and success of your first investment could determine your future as a landlord.
To help you on your journey to becoming a landlord, here are the hottest, up-and-coming, and highest rental yield areas in the UK – and they are all in the north.
According to recent data, Liverpool is currently the most profitable city in terms of rental yields. With Liverpool offering higher than average returns, certain postcodes could prove to be more lucrative than others.
Scooping the highest and second-highest rental yields in the UK, L7 and L6 topped the list, at 11.79% and 11.52%. While LS1, LS2 and LS3 all came in above the national average, between 7.34% and 9.36%.
Next on the list is Middlesbrough. This relatively small, industrial town may not immediately come to mind when thinking about where to buy, but with low house prices and a popular rental market, it could offer a solid investment.
One area in particular, TS1, can produce yields of almost 11%, making Middlesbrough an enticing possibility for first time landlords.
Want to invest in a capital city where rental properties are in high demand? While London is experiencing its first falls in rent for eight years, the rental market in Scotland’s capital is thriving.
In particular, the postcode area of EH8 is currently providing average rental yields of an impressive 10.63%, while EH9, EH11, EH12 and EH16 hover around 8%.
The biggest city in the northwest, Manchester has long been a popular pick for landlords who are looking to make a profitable investment, and it seems that the city is still a wise choice.
In particular, M14 offers the fifth-highest rental yields in the country, with an average of 10.08%. While M19 and M20 offer a respectable – and attractive – 8.6% and 7.09%.
Last on our list is Newcastle. This bustling northern city is a popular rental spot, with some areas offering low asking prices and high monthly rents, making it an ideal location for landlords.
This includes NE6 where the average yield for 2018 sits at 9.48%, which is far above the UK’s median figure of 3.6%.
In addition to the five locations above – where the most lucrative postcodes are also home to that city’s university – university cities as a whole appear to offer the highest rental yields for landlords. This means it may also be worth considering other northern cities with large student population, such as Hull, Huddersfield and Sheffield – three locations that are currently proving to be popular with landlords.
Finally, becoming a landlord can be a profitable and rewarding experience. However, while these areas currently offer the highest rental yields in the UK, before investing, always do your sums. This includes expenses and fees, seeking advice from local experts like Allsop, as well as ensuring your property meets new rules and regulations.