Landlords need to be more savvy

Buy-to-let returns continue to outperform many major asset classes with property investors in Northern areas benefitting from higher yields, owed in part to lower property values. Southern regions unsurprisingly have the lowest yields given the higher housing costs.

Recent research reveals that buy-to-let returns have remained strong in recent months despite the challenges that have faced the market, with Liverpool, Manchester, Middlesbrough, Newcastle and Edinburgh proving to be the top performing regions thanks to high demand for rental properties.

The research, which analysed more than 600,000 properties, once again reveals a clear geographical divide between the north and the south of the country with northern regions coming out on top and the South East in particular showing particularly poorly. Unsurprisingly landlords in London have seen the lowest rental yields.

Students are flocking to university cities year after year and looking for a place to live, it’s no surprise the student market is a dependable one for landlords. This area of growth is most certainly the landlords key to profitability in the future.

Due to the tenant fee ban, changes in mortgage tax relief, and tighter buy-to-let lending criteria, rental profits are now being squeezed more than ever. To maximise their returns landlords need to be savvier and more selective in the areas of purchase.

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.