The rental sector is becoming an even more important sector in the world of property. Millennials are joining General Rent – and older renters too – in looking for long-term rentals. Millennials are turning their back on home ownership because they want the freedom to move as and when they please. Younger generations are more open to being long-term tenants, if not lifelong tenants, rather than homeowners. This is welcome news for professional landlords thinking about increasing their portfolios, as they can concentrate on the millennial demographic when looking for properties.
GoCompare has looked at the best places for landlords to invest in rental properties. The comparison portal has used a range of data to decide on the best places to invest. These include average property price, number of available properties, properties available for rent now, rental price growth, size of the population under 35, and new housing developments. According to the figures, Stoke-on-Trent is the least expensive area to invest in properties, with an average price of £106,000. This offers good potential for rental profits. Oxford is one of the most expensive cities, with an average property price of £411,000. However, with around 23,000 students at the University of Oxford, there is a great market for rentals. Using the GoCompare data, London is the best UK city to be a landlord in terms of the average property price. It is the most expensive place to buy properties, but it also affords the highest rents. Many people working and studying in London have no choice but to rent because they cannot afford the property prices.
Top of the table when it comes to the best place in the UK to be a landlord taking rental price growth as the key factor is Manchester. It has a high growth rate of 5.76%, and is more affordable than southern cities. Leicester is second in the league, with 5.3% growth. Manchester still comes out on top in the league for average rental yields, which determines how much profit is made on the rents. The average rental yield in Manchester is 5.55%, with Sunderland a close second with an average yield of 5.37%. In terms of property prices and yields, the north of England is looking attractive. Popular university cities or districts with good professional companies are excellent places as far as buy-to-let investment is concerned.
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