The UK economy’s return to relative stability is welcome news for property investors, and as the market continues to offer excellent returns thanks to record-high tenant demand, many investors are beginning to wonder where the best place in the UK to buy-to-let is.
The answer isn’t straight forward and we’ll cover some of the main things to consider if you’re looking to invest in UK buy-to-let.
Where is the best place in the UK to buy-to-let?
Usually, this question is divided into a few different questions. Firstly, where is the highest rental yield in the UK? Secondly, where are prices rising fastest? And, thirdly, where am I likely to find the best rental growth in the UK where I will receive a steady and growing income?
We’ll address the first 2 questions afterwards, so for now let’s see where rents are growing quickest in the UK to provide you with the best income.
According to the Office for National Statistics (ONS) data, the region with the highest rental growth to February 2023 was the East Midlands at a 4.9% annual increase. The North West was second with 4.8% annual growth, closely followed by the South West and London.
Which area in the UK has the best rental yield?
According to data provided by Zoopla, the highest-yielding areas by region are:
Scotland – East Ayrshire 8.48%
North West – Burnley 7.92%
North East – Hartlepool 7.64%
Wales – Blaenau Gwent 7.02%
Yorkshire – North East Lincolnshire 6.72%
West Midlands – City of Stoke-on-Trent 6.63%
East Midlands – City of Nottingham 6.49%
South West – City of Plymouth 5.64%
East of England – Fenland District 5.6%
South East – City of Portsmouth 5.6%
London – Barking and Dagenham 5.12%
In England, the North West represents the strongest rental yield and there is still strong interest in the region in terms of investment, business and jobs.
Where are prices rising fastest?
According to the latest house price index, the regions in England with the highest annual house price changes are as follows:
North East – 10%
West Midlands Region – 9.9%
East Midlands – 8.6%
North West – 7.2%
South West – 7.1%
East of England – 6.8%
Yorkshire and The Humber – 6.5%
South East – 6.3%
London – 3.2%
Northern regions ranked highly once again, whilst Midlands regions also experienced strong annual house price growth.
Is buy-to-let in the UK a good investment?
Whether buy-to-let in the UK represents a good investment for you will depend on your circumstances and what you’re looking to get out of an investment.
However, if you’re looking at an investment that provides stability, strong returns, price growth and a growing passive income then UK property is likely the best route for you to achieve your goals.
With rents continuing to soar and house prices remaining stable after years of unprecedented growth, UK buy-to-let offers an excellent avenue for investors looking for a strong return on their investment.
If UK buy-to-let is something you’re interested in as an investment then why not get in touch with us today? We have a vast range of property investment opportunities available!