According to property investors SevenCapital, the best place for investment in 2021 is Birmingham.
They have analysed the top 10 areas for UK property investment and looked at data and trends from various sources including Zoopla.
They have also taken into account the potential for capital growth and rental yields.
Birmingham takes the top spot with an average rental yield of 5.4%, and price growth over the next five years of 14.2%.
The average price of a property in Birmingham is £202,162.
Best BTL investment hotspots
Second place in the list of best BTL investment hotspots goes to Manchester with an average rental yield of 5.37%, and five years' potential growth of 15.76%.
In third place is Liverpool with a 5.3% average rental yield, and price growth over five years of 8.45%.
Nottingham is in fourth place, followed by Newcastle, Leeds, Edinburgh, Bracknell, Sheffield and Glasgow is in tenth spot.
A spokesman for SevenCapital said: "Despite the strains of lockdown, investors are looking ahead already for the best places to invest in property in 2021.
"The property sector continues to defy gravity, and every region recorded a rise in house prices in September, according to the RICS survey, to reach an 18-year high."
He added: "Heading into 2021 means there are a number of buy to let UK hotspots vying for the spotlight."
The managing director of Accommodation for Students, Simon Thompson, said: “Despite the struggles that landlords have suffered with in 2021, there are still opportunities for successful property investment in the UK, whether that it is the private or student accommodation sectors.”
Number of rent increases hits eight-year low
Meanwhile, the number of tenants who have seen rent increases this year has fallen to an eight-year low.
The data comes from Arla Propertymark who say that rent increases fell by nearly a fifth in the year to September.
The president of Arla Propertymark, Angela Davey, said: "Our figures show that during the Covid-19 pandemic, rent increases were down by nearly a fifth, year-on-year, and tenants are staying in their tenancies longer.
"As we head towards winter, there's uncertainty over increasing lockdown measures and it's vital that a tenancy is maintained. It is vital to keep people with Covid-related arrears in their home and ensure that landlords continue to have funds for making mortgage payments."
