Sheffield Buy to Let – 11% Yield
Sheffield comes out TOP in buy to let hotspot list …
Sheffield has topped the list of postcodes where buy-to-let developers could turn a profit on rental properties, according to the latest research from Totally Money.
The credit comparison company revealed an interactive postcode ‘heatmap’ designed to show an at-a-glance view of the potential yield from rental properties across the UK.
Sheffield city centre (S1 postcode) offers a buy to let yield of 11.1%, according to the map, made up of data compiled from analysis of 751,600 properties on the market for sale or rent. Aberdeen (AB24) and Bradford (BD1) offer the next best yields, with 10.4% and 9.2% respectively.
Regionally, investors in the North/Midlands and Scotland are more likely to realise a buy to let yield above the national average of 4.17% – with nine out of ten highest yielding postcodes. Unsurprisingly, the average 3.4% yield for London postcodes is lower than for any other UK city. The 10 lowest yielding postcodes, with the exception of Macclesfield in East Cheshire, are all in Greater London and the South East.
In the past year, nationwide demand for rented accommodation has soared by 18%, and by 50% in London, while supply has dwindled by 19% (3% in London). This has turned the rental market into an increasingly competitive jungle.
“Although property prices are rising faster in London than the rest of the UK, this growth rate hasn’t been mirrored in rent prices,” said Nigel Pocklington, CEO of Totallymoney.com. “Property investors looking for high buy to let yields on rental developments could see the best returns from northern cities or Scotland.”
News Story by Everyinvestor.co.uk – Read more here …
Buy to Let Mortgage Advisor in Sheffield