These BTL markets offer the quickest returns

AFS Team·5 June 2019·4 min read

These BTL markets offer the quickest returns

The best buy to let areas for offering rental returns and the speed for repaying the original investment have been revealed.

According to letting agents Benham & Reeves, the best place for investors is Scotland with the annual rent returning the investment property's original asking price in 17.7 years.

The second quickest is Northern Ireland with 18.9 years, followed by England on 25 years.

Investors in Wales will see their investment being repaid in 26.4 years.

The firm analysed average house prices, along with the cost of buy to let stamp duty and annual rents to rank each area.

How long it would take an investor to recoup the cost of buying

The rankings illustrate how long it would take an investor to recoup the cost of buying in that area with annual rent.

In London, the fastest returns are seen in Tower Hamlets for a buy to let property with the original investment being repaid in 21.4 years.

In second place is Barking and Dagenham with 22 years.

The firm's director, Marc von Grundherr, said: "A buy to let investment is complicated and more so with changes to the sector. However, a good indicator of an investment is the rental yield available.

"We want to highlight which areas offer a good investment option to recoup the investment costs via the rental income."

He added: "The research demonstrates that buy to let remains a lucrative business but should be viewed as a long term investment and not one for making a quick buck."

He also said that those who are looking to invest in buy to let need to understand the commitment they will be under before 'diving in' if they want to make a profit.

Tenants' Fees ban will save £192 million a year

Meanwhile, it's been revealed that the Tenants' Fees ban will save tenants around £192 million a year after its introduction.

The findings from Bunk, a property app, looked at how much tenants are made to pay by letting agents in the run-up to the ban.

They say, using the latest English Housing Survey, that the average tenant will save £223 in fees. That equates to nearly £192 million a year.

The firm's co-founder Tom Woollard said: "Letting agents have for too long been writing their own rules for the fees they charge a tenant.

"The Tenant Fees ban is a step in the right direction with landlords, agents and tenants needing a good level of accountability."