Private Rental Sector Rents Continue To Rise
In 10 Out Of 12 UK Regions
New data published by HomeLet has revealed some UK private rental sector hotspots for property investors and portfolio landlords to consider.
In some areas of the UK PRS rents have continued to increase, despite all the doom mongering that is […]
New Data Reveals UK Private Rental Sector Hotspots
Private Rental Sector Rents Continue To Rise
In 10 Out Of 12 UK Regions
New data published by HomeLet has revealed some UK private rental sector hotspots for property investors and portfolio landlords to consider.
In some areas of the UK PRS rents have continued to increase, despite all the doom mongering that is going on in the media, with rents increasing by the most in:
- Leicester – PRS rents up 45% on 2013
- Southall – PRS rents up 38% on 2013
- Cambridge – PRS rents up 24% on 2013
Meanwhile other parts of the UK witnessed the biggest falls in rental prices in 2014 on new rental agreements with the biggest rental price falls recorded in:
- Colchester PRS rents Down 24% on 2013 prices
- Croydon – PRS rents down 23% on 2013
- Brighton – PRS fall 18% lower than 2013 prices.
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Best And Worst UK Property Investment Hotspots
Rental returns on buy to let properties are best in cities like Southampton, Manchester and Nottingham, where as many as one in four properties are owned by landlords in the private rented sector.
Portfolio landlords and property investors are looking beyond London to identify regions where rental yields […]
UK Cities With Best and Worst Property Investment Yields
Best And Worst UK Property Investment Hotspots
Rental returns on buy to let properties are best in cities like Southampton, Manchester and Nottingham, where as many as one in four properties are owned by landlords in the private rented sector.
Portfolio landlords and property investors are looking beyond London to identify regions where rental yields are almost three times as high as in the capital.
Rental yield is calculated by measuring the rental income against the properties cost
The latest data on buy-to-let yields provided by the HSBC bank, also shows the proportion of properties in each area that are already owned by landlords, with landlords already owning more than one in four properties in many of the top-yielding areas.
HSBC’s report draws on official data from the Office for National Statistics (ONS) and the UK Land Registry with rental data provided by Home.co.uk.
Top Property Investment Hotspots Revealed
- Southampton, currently tops the list for rental returns with rental yields of 8.73% Manchester has rental yields of around 7.98%
- Nottingham has rental yields of around 7.67%
- Blackpool has rental yields of around 7.63%
- Hull has rental yields of around 7.47%
In all of these areas, except Hull, private rental sector (PRS) landlords already own more than one in five properties.
These areas offer relatively low property prices and have strong demand for rental property from large student and young professional populations – the characteristics that the experts say make for excellent buy-to-let investments.
Top 10 Property Investment Hot Spots By Rental Yields
|
Rank |
Location |
Housing privately rented (%) |
Average house price |
Average monthly rent |
Gross rental yield (%) |
| 1 | Southampton | 23.42 | £143,011 | £1,040 | 8.73 |
| 2 | Manchester | 26.85 | £104,244 | £693 | 7.98 |
| 3 | Nottingham | 21.64 | £86,000 | £550 | 7.67 |
| 4 | Blackpool | 24.16 | £77,899 | £495 | 7.63 |
| 5 | Kingston upon Hull | 19.02 | £68,243 | £425 | 7.47 |
| 6 | Coventry | 19.02 | £110,029 | £650 | 7.09 |
| 7 | Oxford | 26.11 | £254,514 | £1,489 | 7.02 |
| 8 | Portsmouth | 22.28 | £146,709 | £795 | 6.50 |
| 9 | Liverpool | 21.75 | £91,175 | £494 | 6.50 |
| 10 | Cambridge | 23.91 | £185,414 | £1,001 | 6.48 |
The lowest rental yields were registered in areas such as London where recent property price rises have outpaced the growth in rental yields and in some areas like Westminster 38% of property is privately rented.
Worst 10 Property Investment Areas By Rental Yield
|
Location |
Housing privately rented (%) |
Average house price |
|
Gross rental yield (%) |
| Kensington and Chelsea | 33.97 | £1,236,605 | £2,968 | 2.88 |
| Thanet | 21.96 | £189,362 | £524 | 3.32 |
| Hastings | 27.19 | £184,787 | £520 | 3.38 |
| Haringey | 30.33 | £425,541 | £1,200 | 3.38 |
| Westminster | 37.56 | £890,272 | £2,578 | 3.47 |
| Hammersmith and Fulham | 30.05 | £685,797 | £2,004 | 3.51 |
| Richmond upon Thames | 20.55 | £540,379 | £1,699 | 3.77 |
| Camden | 30.46 | £715,831 | £2,383 | 3.99 |
| Ipswich | 18.75 | £158,925 | £546 | 4.12 |
| Lincoln | 19.36 | £124,789 | £433 | 4.16 |
Head Of Mortgages at HSBC Peter Dockar, said: “House prices in the top-yielding locations – while still out of reach among many first time buyers – are relatively affordable for landlords investing in property and the demand from young professionals has pushed up rents and driven up the returns. London is often seen as the haven of property investment with many believing the streets are paved with gold. However, while the highest rents in the country are an attractive draw for landlords, high house prices in the capital squeeze yields and limit the returns available. As a result, returns can often be far more attractive in other areas so it certainly pays for landlords to do their research.”
Local Housing Allowance (LHA) Rates Change In April
Every year the Government publish Local Housing Allowance (LHA) rates that are periodically reviewed and payment levels in some UK regions may change without notice.
The April 2014 – March 2015 LHA rates have now been published and the revised list makes interesting reading for landlords and […]
New LHA Rates for 2014 -2015 Published
Local Housing Allowance (LHA) Rates Change In April
Every year the Government publish Local Housing Allowance (LHA) rates that are periodically reviewed and payment levels in some UK regions may change without notice.
The April 2014 – March 2015 LHA rates have now been published and the revised list makes interesting reading for landlords and letting agents who are willing to accept tenants claiming benefits.
UK private rental sector landlords are able to ensure rental property profits by allowing their properties to be let to tenants claiming housing benefit (HB), with local authority rental payments exceeding buy-to-let mortgage payments.
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Best Places For UK Property Investment
UK Property Investment Hot Spots
Identified By Journalist
The post-recession boom in house prices has prompted Christopher Middleton to write about the best property investment hot spots in the press this week and he put forward some of the best areas of the UK that can provide property investors with decent returns.
According to the Office for National Statistics, UK house prices are officially on the up. Property values rose by 3.1% in the 12 months to June 2013, compared to 2.9% in the year to May 2013.
The Royal Institution of Chartered Surveyors (RICS), say that property prices are rising at their fastest rate since the pre-crash days of 2006.
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Property In The North Is Cheaper
North of England Leading The Way
For Renting Property
Renting property is more affordable in Northern regions of the UK as property prices in some areas stretch beyond of the reach of the average earnings of first-time and next-time buyers.
Chichester is the least affordable place to buy or rent property in the UK, whereas Hull and Belfast are the most affordable.
Middlesbrough, Dudley and Wolverhampton have the most affordable rental markets in the UK with 99% of properties within an average working couple’s budget.
The North-South divide is still prevalent in the UK property market with the most affordable properties located in the North of the country, where first-time and next-time buyers in full-time employment have the largest pool of properties within budget to choose from
Rental prices in East Anglia and the South East of England are among the highest in the UK according to analysts as these areas outperform the rest of the country, due to high tenant demand.
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New research by LloydsTSB group has revealed over 200 roads in the UK with properties valued over £1 Million (GBP)
High value properties can be found in almost every region in England and locally they are most often known as Millionaire’s rows.
However, despite the UK still in the process of recovering from a double dip recession, there are over 200 roads in Britain where properties command £1 Million+ (GBP) asking prices.
The country’s most expensive streets are within the London boroughs of Kensington and Chelsea and Egerton Crescent in
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While London may prove to have the most expensive streets in the UK within Kensington and Chelsea , MyPropertyPowerTeam.com lists the other expensive streets Lloyds TSB identified across England and Wales by region.
Property investors should be on the lookout for properties available in these top locations. Remembering the old adage of “buying the worst properties in the best streets” in order to maximise capital appreciation.
- East Anglia
The most expensive streets in East Anglia are concentrated in Cambridge.
All are close to the main University area (particularly around the Botanic Gardens) in the CB2 and CB3 postal districts.
The most expensive street is Sedley Taylor Road with an average house price of £ 1,111,000.
- East Midlands
Valley Road in the Nottingham suburb of West Bridgford is the most expensive street in the East Midlands with an average price of £823,000. Unlike in other regions, the most expensive streets in the East Midlands are spread around the region in towns such as Northampton (Golf Lane, £795,000), Leicester (Swithland Lane, £675,000) and Belper (Hazelwood Road, £790,000).
- North
Seven of the ten most expensive streets in the North are in Newcastle, with many of them in the Jesmond and Gosforth areas.
Graham Park Road is the most expensive with an average price of £1,228,000 followed by Oakfield Road (£896,000) and Darras Road (£750,000).
- North West
The ten most expensive streets in the North West are all in areas south of Manchester.
Withinlee Road in Prestbury is followed by Macclesfield Road in Alderley Edge (£1,320,000) and Torkington Road (£1,285,000) in Wilmslow.
- South East
Five of the ten most expensive streets in the South East are in Surrey. Properties on Leys Road in Leatherhead have an average price of £3,108,000 (highest outside London).
Other expensive streets in the region include Moles Hill in Leatherhead (£2,608,000), Nuns Walk in Virginia Water (£2,574,000) and both Phillippines Shaw (£2,352,000) and Wildernesse Avenue (£2,293,000) in Sevenoaks.
- South West
Poole has six of the ten most expensive streets in the South West.
Brundenell Avenue in Sandbanks in Dorset has an average house price of £2,024,000 and is the most expensive street outside of London and the South East.
Sandbanks is well known for commanding premium property prices, with Chaddesley Glen (£1,443,000), Crichel Mount Road (£1,415,000), Elms Avenue (£1,366,000) and Bingham Avenue (£1,310,000) all having an average price above £1 Million (GBP).
- West Midlands
Four of the ten most expensive streets in the West Midlands are in Solihull. The most expensive streets are Quarry Park Road in Solihull (£1,070,000), Rosemary Hill Road in Sutton Coldfield (£990,000) and Alderbrook Road in Solihull (£939,000).
- Yorkshire and the Humber
The most expensive streets in Yorkshire and the Humber are all located in the area that makes up the “Golden Triangle” between Harrogate, Wetherby and North Leeds.
The region’s most expensive street is Bracken Park in Scarcroft in Leeds with an average price of £934,000, followed by Wigton Lane in Leeds (£840,000) and Orchard Close in York (£800,000).
- Wales
The most expensive street in Wales is Druidstone Road in Cardiff with an average house price of £685,000.
Eight of the ten most expensive streets in the Principality are in Cardiff and Swansea; the remaining two are Gannock Road in Conwy (£677,000) and Glasllwch Lane in Gwent (£485,000).
