The UK's buy to let hotspots revealed

AFS Team·10 April 2019·4 min read
The UK's buy to let hotspots revealed

The UK's buy to let hotspots revealed

The UK's best buy to let hotspots have been revealed with the news that average rents grew in the year to March by 0.96%.

According to the research from Landbay, the best city for rental growth in that period was Edinburgh, with growth of 5.97%.

In second place is Nottingham on 4.28% and Blaenau Gwent with 3.76%.

Landbay says that the areas of high growth are spread around the UK with Scotland delivering the highest level of annual rental growth overall of 1.99%.

The chief executive of Landbay, John Goodall, said: "Despite economic and political turmoil, the property market is resilient and rents are growing at a steady pace and the growth is not restricted to specific rental brackets or regions."

Also, he said that landlords should welcome the news that England's house prices fell in the first three months of this year - the first time they have done so in seven years.

Opportunity for landlords who are looking to expand

Mr Goodall says this is an opportunity for landlords who are looking to expand their investment portfolio.

The research also highlights that rent growth in London is starting to pick up again after a slump last year. The annual rent growth overall for the capital was 0.57% and last year it was -0.28%.

Since last year's figures highlighted that 17 out of London's 33 boroughs saw rents fall last March, just three boroughs have seen rents continue to fall. They are Kensington and Chelsea, Merton and Enfield.

The average rent for London is currently £1,903 and since January 2012 there has been a cumulative rental growth in the city of 9.32%.

The average UK property rent being paid currently is £1,217 and with London's rents excluded, this figure is £772.

Brexit will not affect investment plans say investors

Meanwhile, research has revealed that more than half of the UK’s property investors say that Brexit has not affected their investment plans.

The analysis by Market Financial Solutions found that 64% of respondents have not allowed Brexit to impact their investment property decisions since the 2016 referendum.

Also, 45% of investors say they have expanded their portfolio since 2016 and just 7% have sold at least one property as a result of Brexit.

The firm's chief executive, Paresh Raja, said: "Across most financial sectors, there’s a sense of Brexit fatigue but the research shows an appetite for real estate and it remains strong.

"The positive note is that most property investors are seeking new opportunities despite Brexit and this buoyant behaviour is set to continue in the coming months."