Investing in buy-to-let properties can be a great way to build long-term wealth, but it’s important to choose the right location. A recent report by Aldermore bank has named Manchester as the top city for buy-to-let property investment. Landlords in Manchester have benefited from strong property prices and high rental demand, allowing them to weather the current economic storms. Property prices in the city have increased by 5.6% over the past year, and the average home costs £247,341. Additionally, nearly a third of Manchester’s residents rent privately, which is driving short-term demand and providing landlords with the opportunity to make a good return on their investment.
London came in second on the list, thanks to high rent prices and a large proportion of residents who rent privately. However, short-term yields in London are lower than in other cities. Peterborough and Milton Keynes also made their debut in the top 10 of the list due to increased desirability resulting from new rail links and the rise of working from home since the pandemic.
On the other hand, some cities have seen a rapid deterioration in their buy-to-let prospects. Despite high house prices, Oxford dropped from second place last year to eleventh place this year due to a fall in rent prices and long-term returns, as well as lower short-term yields. Leicester, Northampton and Derby also saw a decline in the rankings compared to last year.
Aldermore Bank analysed the average rent per room per month, short-term yield for a new buy-to-let purchase, the average property price rise over the last 10 years, the proportion of vacant properties in the city and the size of the private rental market to produce the ranking. But even with good cities to buy-to-let invest, interest rate rises, uncertainty in the UK economy, as well as stamp duty shifts and looming Energy Performance Certificate changes are putting landlords and tenants under pressure.
Squire is a Tenancy management App that would help resolve some of the concerns mentioned in the blog, by providing landlords and tenants with an easy-to-use platform for managing the rental experience. Squire’s features include e-signing of lease agreements, rent collection and payment tracking, and even allows you to rate your rental experience and communicate with your landlord or property manager. With Squire, landlords can keep track of their properties and manage them more efficiently, and tenants can easily communicate with their landlords and take care of routine tasks like paying rent.
In conclusion, Manchester comes out on top as the best city for buy-to-let property investment, due to the robust property prices and strong rental demand. Cities like London, Peterborough and Milton Keynes also offer good returns but they do have their own set of challenges. And a property management App like Squire can aid in managing the renting experience and making it smooth for both landlord and tenant.
