Manchester currently has the best yields for landlords in England and Wales and the highest rental growth, making it the best location for buy to let, according to new research.
When it comes to yields the average in Manchester is 5.55%, followed by Sunderland at 5.37%, then Liverpool at 5.05%, according to the figures from comparison website GoCompare.
Manchester is also the top location for rental growth at 5.76%, followed by Leicester at 5.3% and then Cardiff at 5%.
The research also looks at prices and found that Stoke on Trent is in least expensive area to buy property with an average property price of £106,000, making it the best place to buy a property and rent it afterwards. Landlords in this area will have the best potential to make good profits, says research.
In terms of high costs, London is the most expensive with an average price of £484,000 and then Oxford at £484,000. However, the research suggests that even although prices are high in Oxford demand is high for rental properties from students.
In terms of London the report says; ‘The gentrification of areas and the facilities people have to move, plus the growing offer of jobs in the capital have made of London the most expensive city to buy a house, therefore renting out is it an option that needs to be consider really carefully’.
GoCompare has launched a new interactive tool that allows landlords to compare different cities to find the best location for rents and yields. It allows users to organise them by average property price and rental yields, population under 35, number of properties available, number of letting/maintenance agencies, number of new housing developments, properties currently available for rent and rental price growth.