Do you dream of living beside the seaside? Well millions of people apparently do because
seaside towns and port cities are the most lucrative places for landlords interested in
expanding their property portfolios.
Where are the Most Lucrative Places?
Blackpool, Southampton and Hull are apparently the best places to purchase a buy to let
property. If you own a rental property there, you can look forward to a rental yield of around
8%, which as we are all too painfully aware is considerably higher than the average savings account.
According to the head of mortgages at HSBC, “Buy to let remains a good investment for those looking for above-average returns. Twenty-three of the top 50 areas offer yields above 5%, significantly more than is available from more traditional savings options.”
A Fine Line
Unfortunately, choosing the right area for your buy to let properties is not an exact science.
Rental property in London is in very high demand, yet rental yields are a lot lower than
Manchester or Coventry. This is mainly because of the far higher property prices in London. If you were looking to buy an average sized house in Kensington, for example, expect to see a price tag of around £1 million, which most landlords can’t afford.
However, some boroughs are performing better than others, so if you want to invest in the
London area, stick to Southwark where prices are lower and rental yields are around 6%.
Southwark may not have Blackpool Tower, but it does have the Shard.
