Most savvy landlords are aware that some areas of the UK are more
attractive than others when it comes to investing in rental
properties. But a recent survey conducted by Home.co.uk has shown
that there are some surprising anomalies in the profitability (or
not) in some parts of the UK.
North – South divide
It doesn’t take a genius to figure out that properties in London are
going to offer far higher returns than a deprived part of Teeside,
and sure enough, some of the best performing rental areas are in
London. However, rather surprisingly, the areas that are the worst
performing in terms of return on investment are spread right across
the UK.
Don’t buy beside the seaside
Three of the worst performing areas are popular seaside resorts in
Kent: Margate, Ramsgate, and Broadstairs. I don’t know why this is
the case, but the figures indicate that you would lose money even
owing a property in any one of these towns, irrespective of whether
you were unable to find a tenant (and that wouldn’t be easy either
since the average void period here is 134 days).
Do your research
It is always sensible to do your research before investing in a new
area. Ask agents how easy it is to find tenants and check out what
the average property prices and rental incomes are. Think about what
type of tenant you are targeting and find something to suit. After
all, there is little point in targeting young professionals in a run
down town where the unemployment rate is more than 50%.
