Over the past decade our own research has shown that London has provided the highest total returns from buy-to-let. But these returns substantially rely upon capital growth rather than rental returns despite the fact that London landlords enjoy our highest rental income at an average of £1,900pcm.
However, not all our landlords have the resources or desire to expand their portfolio in the capital, so perhaps it is worth taking a look at Reading, Southampton and Slough, which achieve the next highest average monthly rents outside of London. Geographers among you will recognise that rental incomes have a ripple effect depending on proximity to London, especially given that many commuters look to rent in these places.
Other places you should be looking for the best total return on your outlay are Liverpool, Glasgow, Birmingham and Ipswich, all of which have demonstrated strong total returns over the last decade.
Curiously the city with the highest percentage of landlords who do not live there themselves is Sheffield (90% of the landlords in our survey were absentee) compared to almost 90% of landlords in Uckfield, West Sussex who live and have invested in property in the town.
Our market intelligence reports (available here
), released in spring of this year, highlight the potential yields you can get in any of ten UK regions. The market intelligence reports are free to download from our Ask Martin microsite, which you can find here
If you want to expand your portfolio and recognise that you can achieve a higher yield outside your local region, get in touch with the Martin & Co office in the area which is of interest and ask the staff to guide you through the property types and locations which are easiest to let and will give you the best returns. Our offices will work on a retained basis to identify suitable properties for you to buy and will be pleased to help with negotiating the price.
*data source: http://www.thisismoney.co.uk/money/buytolet/article-3175921/Buy-let-hotspots-revealed-London-Birmingham-Manchester-Nottingham-rise.html