Bristol, Oxford, Cambridge, Manchester and Luton have been hailed the best top five cities for landlords to invest in this year, based on analysis of key indicators impacting buy-to-let desirability (including average total rent, the best short-term returns through yield and long-term return through house price growth).1
Investors have been eschewing London, which has slipped to sixth place. It seems many landlords are looking to areas with a high student population – where they can attract a greater rental yield.
The Scottish cities of Edinburgh and Glasgow both sit within the top 20 and are cited as ‘particularly attractive to landlords looking for short-term yields.’ Edinburgh benefits from a high percentage of private renters (86%) ensuring one of the highest rental returns of all cities.
Head of Mortgage Distribution at Aldermore Bank, Jon Cooper, commented on the findings, “The City Tracker shows the UK housing market is rich with diverse and unique conditions across the regions that are ripe for investment opportunities. As we move towards a post-COVID environment, we hope this analysis gives food for thought to many landlords on where to look for those hidden gems and returns that meet their business strategies.”
He continued, “Private landlords are a central part of the housing market, supporting over 4.5 million households in the UK and, as we emerge from the pandemic, landlords will need to meet the emerging demand for choice and variety from renters. With the economy opening up and EPC rating changes coming in 2025, now is a great time for landlords to talk with their broker to review where they want to take their portfolios in the future.”
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1Aldermore, Dec 2021