Despite the introduction of profound changes to the taxation of buy-to-let investments, leaving many landlords facing higher tax bills, there are still are still parts of the UK where investors can find attractive returns.
The best area to currently invest in is the North West of England, according to research by property investment portal One and Only Pro, where a combination of affordable property prices and high demand from rental accommodation, including from large student populations, means that there are some good rental levels achievable, not to mention high yields.
The North West city of Salford tops the charts of Britain's towns and cities where houses are cheaper to buy, but rents are comparatively high, according to the study by the AI powered property website that has ranked the top 172 buy-to-let locations using its unique algorithm.
Investment properties across England and Wales were given a score from one to ten, with properties rated ‘ten’ being the most likely to increase in value.
The five locations with the highest concentration of top scoring properties can be found in the North West of England.
Properties in Salford were given the top score by One and Only Pro include a three-bedroom flat priced at GBP 130,000; it has a 12% potential yield and expected rental income of up to £1,300 per month.
Burnley came second with 20% of the properties showing the greatest investment potential, while Birkenhead and Bootle shared third place with 16%.
Blackpool at 12% took the last place in the top five.
These ‘satellite towns’ are now expected to increase in popularity due to their big city neighbours being overbought in comparison.
One and Only Pro only lists properties considered to be viable for investment, so shared ownership, retirement and other unsuitable property types are stripped out.
Henri Sant-Cassia, One and Only Pro’s CEO, said: “It is true that the North West is showing the greatest number of properties with investment potential but a ‘shrewd’ investor can find ‘diamonds’ almost anywhere in the UK.
“One and Only Pro has been designed to reveal those hidden gems so even inexperienced investors can find the best deals in a particular area.
“The top location in Wales for example was Swansea in position 28 out of 172 and Portsmouth comes in 32nd place claiming top spot for the South of England. There are also 2% of properties on the market in London - in 60th position on the list - that will see an increase in value and represent a solid investment.”