Wondering where the best place to buy rental property in the UK is? You aren’t alone. For all of the challenges buy to let landlords have faced over the last few years, quality rental properties are still in high demand. Between 2007 and 2017, the number of households living in private rental accommodation increased by 63% – and this isn’t expected to decrease any time soon.
At the same time, a weaker pound is driving a significant amount of interest from foreign investors. As a result, many people are still keen to invest in UK property – and many of them are wondering where exactly is the best place to start.
Investing in London’s buy to let market
Historically, many buy to let landlords – particularly foreign investors – chose London and the south east as their favoured locations, primarily motivated by the capital’s stability and good rates of price growth. Foreign investors, meanwhile, have been drawn by London’s global reputation. Property in London will always be in demand, meaning landlords shouldn’t struggle to find good tenants.
However, price growth in London has slowed down in recent years. It’s also hard to achieve high yields in London, as property values are so much more than throughout the rest of the country. As a result, many are looking further afield for the best place to buy rental property in the UK.
Investing in regional buy to let property
In the Midlands and the North, property prices are much cheaper – but they are expected to grow, making these areas appealing to investors. Nottingham in the East Midlands has been repeatedly identified as a real growth hotspot, while in popular cities like Liverpool, it’s possible to achieve some of the highest yields in the UK.
In cities such as this, it’s possible to purchase an entire portfolio of rental properties for the cost of just one or two assets in London. And it’s likely that regional hubs will see more and more investment over the coming decades, driving growth and increasing the demand for high quality rental properties. So, if you’re looking for relatively cheap property with excellent potential for growth, regional property may be the answer.
Understanding your objectives
Ultimately, the best place to buy rental property will depend on your objectives – are you looking for high yields, a stable way to invest your money, or for a property with high price growth potential?
Whatever your objective, the buy to let mortgage you’re able to secure will also be a crucial consideration. Download our guide, Navigating the changing world of buy to let finance, or speak to an Articus Finance broker for further advice.