North for profit

Low average house prices and strong rents have helped to make Liverpool and the surrounding area the number one buy-to-let hotspot in the UK. The area benefits from a combination of low average house prices (£122,000) and strong rents (£990).

The Midlands is home to the second and third best performing investment locations, with average rental returns of 5.6% in Nottingham and 5.4% in Coventry. Greater Manchester (4.3%) and Portsmouth (4.2%) also make it into the top 10.

Only three of the top 10 buy-to-let hotspots are located in the South of England, and are restricted exclusively to coastal towns – Portsmouth, Bournemouth and Southampton – with student and holiday rental markets.

Mortgage repayments are one of the biggest expenses for landlords who do not purchase their investment property outright, and the size of the loan needed is impacted by housing costs. Within the top 10 buy-to-let hotspots, average annual interest-only mortgage costs vary significantly from £5,940 (Blackpool) to £13,548 (Bournemouth).

None of the locations with the top 10 highest average rents are buy-to-let hotspots. Situated almost exclusively in London, these locations bring up to £5,000 in monthly rents – but come associated with hefty purchase costs.

Mortgage interest rates remain low both in standard and limited company deals with fixed periods becoming ever more popular with the prudent landlord.

If you are looking for a new or re-mortgage please do make contact and one of our qualified advisers will be happy to help.