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TODAY'S OTHER NEWS

Top BTL locations based on speed at which you can recoup your investment

New research looking at the best buy-to-let markets to recoup your investment on both property price and stamp duty costs based solely on annual rental return has revealed that Scotland currently ranks as the number one country in the UK.  

The research, commissioned by Benham and Reeves, found that Scotland is the quickest country in the UK recoup your investment on both property price and stamp duty costs based solely on annual rental return, with the annual rent repaying stamp duty and average property price in 17.7 years.

Northern Ireland was the second quickest at 18.9 years, followed by England at 25 years and finally Wales at 26.4 years.

With Scotland and Northern Ireland home to the quickest return on a top level, it is no surprise that they account for the top three quickest areas in the UK, with Glasgow the quickest of them all at 13.3 years followed by Belfast at 15.8 years and Aberdeen at 17.8 years. 

Nottingham was the quickest area in England to see rental income recoup the cost of buying a property at 18.4 years, followed by Newcastle at 18.5 years. 

In London, Tower Hamlets is the best buy-to-let investment for the fastest return, with annual rental income taking 21.4 years to return the average house price and stamp duty costs of £452,821. 

Barking and Dagenham (22 years), Newham (23 years), Greenwich (23.5 years) and Enfield (25.7 years were also amongst some of the best options in the capital. 

Marc von Grundherr, director of Benham and Reeves, said: “Buy-to-let investment is a complicated business, even more so given the changes to the sector of late, however, the primary indicator of a good investment is always going to be the rental yield available. 

“While a buy-to-let investment includes all sorts of additional concerns such as contingency budgets, capital growth and so on, we wanted to highlight on a more digestible level where offers a good investment option when it comes to recouping the cost of that investment via your rental income.

“What this research demonstrates is that while buy-to-let remains a lucrative business despite the Government’s attempts, it should be viewed as a long-term one and not a method for making a quick buck. For those serious about the sector whether it be as a professional or amateur landlord, it’s important to understand the commitment before diving in if you wish to see a profit.”

By Country

Location Average house price Stamp duty Combined cost Average rent (per year) Years to recoup investment
England

£243,128

£9,656

£252,784

£10,128

25.0

Wales

£158,696

£4,760

£163,456

£6,182

26.4

Scotland

£149,461

£6,067

£155,528

£8,786

17.7

Northern Ireland

£134,811

£4,240

£139,051

£7,344

18.9

By London Borough

Location Average house price Stamp duty Combined cost Average rent (per year) Years to recoup investment
Tower Hamlets

£428,538

£24,283

£452,821

£21,144

21.4

Barking and Dagenham

£300,517

£14,041

£314,558

£14,316

22.0

Newham

£370,525

£19,642

£390,167

£16,956

23.0

Greenwich

£372,803

£19,824

£392,627

£16,704

23.5

Enfield

£397,193

£21,775

£418,968

£16,284

25.7

Southwark

£499,353

£29,948

£529,301

£20,460

25.9

Brent

£464,522

£27,161

£491,683

£18,984

25.9

Lambeth

£498,431

£29,874

£528,305

£20,040

26.4

Hackney

£563,134

£35,050

£598,184

£22,272

26.9

Ealing

£471,561

£27,724

£499,285

£18,384

27.2

Lewisham

£397,335

£21,786

£419,121

£15,360

27.3

Wandsworth

£572,014

£35,761

£607,775

£22,260

27.3

Hounslow

£404,615

£22,369

£426,984

£15,552

27.5

Croydon

£359,336

£18,746

£378,082

£13,596

27.8

Havering

£362,698

£19,015

£381,713

£13,620

28.0

Redbridge

£410,799

£22,863

£433,662

£15,204

28.5

Merton

£514,903

£31,192

£546,095

£18,912

28.9

Sutton

£368,520

£19,481

£388,001

£13,368

29.0

Hillingdon

£410,804

£22,864

£433,668

£14,940

29.0

Richmond upon Thames

£657,364

£42,589

£699,953

£24,000

29.2

Bexley

£342,993

£17,439

£360,432

£12,312

29.3

Waltham Forest

£435,765

£24,861

£460,626

£15,636

29.5

Barnet

£515,882

£31,270

£547,152

£18,420

29.7

Harrow

£458,632

£26,690

£485,322

£16,308

29.8

Hammersmith and Fulham

£676,133

£44,090

£720,223

£24,060

29.9

Islington

£642,894

£41,431

£684,325

£22,848

30.0

City of Westminster

£912,082

£62,966

£975,048

£32,508

30.0

Haringey

£535,659

£32,852

£568,511

£18,240

31.2

Bromley

£442,388

£25,391

£467,779

£15,000

31.2

Kingston upon Thames

£482,969

£28,637

£511,606

£16,260

31.5

Camden

£774,313

£51,945

£826,258

£25,404

32.5

Kensington and Chelsea

£1,163,716

£95,033

£1,258,749

£38,076

33.1

City of London

£860,634

£58,850

£919,484

£26,268

35.0

By City

Location Average house price Stamp duty Combined cost Average rent (per year) Years to recoup investment
Glasgow

£129,764

£5,190

£134,954

£10,140

13.3

Belfast

£128,386

£3,919

£132,305

£8,364

15.8

Aberdeen

£148,236

£5,994

£154,230

£8,676

17.8

Nottingham

£143,297

£4,664

£147,961

£8,040

18.4

Newcastle

£153,442

£5,172

£158,614

£8,556

18.5

Manchester

£178,039

£6,401

£184,440

£9,888

18.7

Derry City and Strabane

£120,651

£3,619

£124,270

£6,300

19.7

Leeds

£184,517

£6,725

£191,242

£9,144

20.9

Edinburgh

£263,868

£13,348

£277,216

£12,816

21.6

Lisburn and Castlereagh

£160,301

£5,515

£165,816

£7,608

21.8

Bristol

£274,351

£11,948

£286,299

£12,888

22.2

Liverpool

£131,276

£4,063

£135,339

£5,988

22.6

Sheffield

£161,475

£5,573

£167,048

£7,356

22.7

Birmingham

£186,806

£6,840

£193,646

£8,520

22.7

Swansea

£146,712

£4,401

£151,113

£6,624

22.8

Portsmouth

£207,033

£7,851

£214,884

£9,408

22.8

Southampton

£208,692

£7,934

£216,626

£9,456

22.9

London

£463,283

£27,062

£490,345

£20,148

24.3

Leicester

£165,258

£5,762

£171,020

£7,020

24.4

Cardiff

£207,531

£7,189

£214,720

£8,796

24.4

Bournemouth

£256,579

£10,526

£267,105

£10,344

25.8

Oxford

£414,972

£23,197

£438,169

£16,824

26.0

Plymouth

£176,973

£6,348

£183,321

£6,936

26.4

Newport

£179,301

£5,379

£184,680

£6,463

28.6

Cambridge

£436,255

£24,900

£461,155

£14,688

31.4

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    I think these statistics are misleading as a Glasgow flat costing around £200,000 would command a rent of around £800 per month, so taking over20 years to pay back. An entry level flat costing under £130000 would probably only rent for around £500 per month, again taking over 20 years. These two statistics don't apply to the same properties as the purchase price and rental averages are based on completely different samples. Another example of sloppy journalism here.

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