Where’s Hot And Where’s Not For Buy To Let

Peer-to-peer property funders have drawn up a list of places with the best and worst buy-to-let returns for landlords.

LendInvest matches cash from investors with buy to let borrowers as secured loans and mortgages.

Blackburn, Lancashire, tops the table as the place with the biggest increase in the gross rental yield in the year to July 2016 and the place with the cheapest average homes.

House prices average £95,000 while yields jumped 37.8% from 4.13% to 5.69%.

The worst place to buy a rental home in Durham, where house prices average £110,000 and rental yields have collapsed from 7.09% a year ago to 4.67% this year.

The data analysis looks at rents listed on the property site Zoopla and price information from the Land Registry across each postcode area in England and Wales.

LendInvest CEO Christian Faes pointed out that all the top 10 buy-to-let hot spots had seen average yields increase by more than 10% in the year and the bottom 10 decline by more than 18% over 12 months.

“Savvy property investors won’t only look out for which areas will offer the best returns right now, but are considering the best growth for the months and years to come,2 he said.

“That means spotting areas which will become more popular in the future.

“That may be due to improved transport links, for example those towns which are due to be on the new HS2 line, or those which are due to benefit from new infrastructure projects, which will bring additional employment into the region.”

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Investing in a Property

Investing in a private rented property can be achieved in a variety of ways. Sometimes landlords inherit a property that they then turn over to renting. Sometimes owners of properties become unintentional landlords because they are unable or unwilling to sell a property at the value the market currently dictates.