Zoopla found Middlesborough in North Yorkshire is the best place in England to invest in buy-to-let. The town provides investors with a gross rental yield of 7.7 percent.
However, many of the top places to invest in the UK are all in Scotland.
Five of the top 10 UK yields hotspots are in Scotland, with East Ayrshire, North Ayrshire, Inverclyde, Glasgow City, and Stirling all ranking highly.
The North East is second only to Scotland, with its “investor triangle” of Sunderland District, County Durham and Hartlepool all registering yields of over seven percent.
The experts claim there has been an uplift in investor interest on Zoopla stimulated by the announcement in July of a Stamp Duty holiday.
Demand has increased across the UK, but particularly in southern England.
The research comes as Zoopla launches its new Investor Zooploma, designed to offer a range of expert advice to buy-to-let investors on topics from rental yield and legalities, to financial liabilities.
Since launch, the Zooploma has had over 10,000 sign-ups, with investors able to sign up for free via Zoopla.
Tom Parker, Consumer Spokesperson at Zoopla comments: “With all of the top ten hotspots being in northern England or Scotland, it’s clear that the significantly lower house prices that characterise these areas, and come in well under the national average of £291,055, is playing in a role in the higher yields generated for investors.
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“Yields are of course one consideration for investors and, for those considering their first foray into the buy-to-let market, it is worth considering house price growth forecasts for an area, and whether rents are likely to rise over time.
“With all those factors taken into account, now could be a good time to invest or expand a portfolio, with investors able to benefit from the stamp duty holiday – paying only the three percent levy – until March 2021.”
Zoopla’s Top 10 UK Property Investor Hotspots
- Middlesbrough 7.7 percent
- East Ayrshire 7.7 percent
- North Ayrshire 7.7 percent
- Inverclyde 7.7 percent
- Glasgow 7.6 percent
- Stirling 7.5 percent
- Sunderland 7.4 percent
- County Durham 7.4 percent
- Nottingham 7.3 percent
- Hartlepool 7.3 percent
House prices are enjoying a boost currently. This is mainly due to the pent up demand in the market from lockdown and Rishi Sunak’s stamp duty relief.
However, experts have warned house prices will fall as the “true scale” of coronavirus becomes clear.
An expert from Halifax warned that eventually prices would fall down again, following the general downturn of the economy.
Russell Galley, Managing Director, Halifax, said: “Notwithstanding the various positive factors supporting the market in the short-term, it remains highly unlikely that this level of price inflation will be sustained.”
Recent data as revealed the cheapest commuter towns where homebuyers can save thousands.
StripeHomes looked at the current cost of buying a new-build in 20 major cities and compared this to the cost of buying a new-build home in each of the local authorities that surround these major cities.
In Slough, the average new-build is £174,000 cheaper than London with a travel time into the city being just 24 minutes.
Cardiff and Edinburgh are home to the second-largest commuter belt saving when opting for a new-build property.
Published at Thu, 10 Sep 2020 03:01:00 +0000