A number potential property hotspots have been identified for buy-to-let investors with an eye on the future.
Government infrastructure spending and investment has been taken into consideration by letting management platform, Howsy, as part of the research.
Howsy analysed 34 areas currently benefitting from government investment and likely to see demand for rental properties increase, ranking them on which offer the best available rental yield right now based on local market data.
With an average house price of £146,000 and an average current rent of £881 per month, the regeneration of Dundee Waterfront, one of Western Europe’s most extensive waterfront projects, ranks top with an average yield of 7.2% in the surrounding rental market.
Liverpool Ten Streets is the second-best buy-to-let where existing government investment and regeneration is concerned.
The current average cost of investing in the surrounding area is £123,480, coupled with the average monthly rent available at £657, would see landlords receive a 6.4% return on their investment each month.
Other areas of current regeneration to rank in the top 10 for highest current rental yields include:
+ Destination Bootle: 6%
+ Tribeca Belfast: 6%
+ Wirral Waters: 5.8%
+ Manchester Mayfield: 5.2%
+ Purfleet on Thames: 5.2%
+ South Shields 365:5.2%
+ Salford Crescent: 5%
+ Cardiff Central Square: 4.9%
Calum Brannan, founder and CEO of Howsy, said: “Investing can often require a long-term vision but with buy-to-let profitability being squeezed in recent years, investing with an eye on the future isn’t a luxury many landlords can afford at the moment.
“However, that doesn’t mean a savvy investor can’t receive an immediate return on their buy-to-let bricks and mortar while also benefitting from Government regeneration further down the line.
“There are a whole host of areas currently undergoing extensive regeneration projects which will increase rental demand in the short-term due to the construction itself, but also in the long-term, as these new developments bring more job opportunities and a greater appeal for living in general.”
Regeneration projects / programmes | Average price | Average rent pm | Average yield |
Dundee Waterfront | £146,000 | £881 | 7.2% |
Liverpool Ten Streets | £123,480 | £657 | 6.4% |
Destination Bootle | £90,439 | £455 | 6.0% |
Tribeca Belfast | £184,305 | £921 | 6.0% |
Wirral Waters | £100,426 | £487 | 5.8% |
Manchester Mayfield | £195,429 | £851 | 5.2% |
Purfleet on Thames | £220,969 | £961 | 5.2% |
South Shields 365 | £101,079 | £436 | 5.2% |
Salford Crescent | £207,065 | £862 | 5.0% |
Cardiff Central Square | £192,230 | £791 | 4.9% |
Leicester Waterside | £172,754 | £709 | 4.9% |
Derby City Centre | £141,696 | £569 | 4.8% |
Ravenscraig | £113,956 | £452 | 4.8% |
Hartlepool | £107,956 | £415 | 4.6% |
Birmingham Big City Plan | £201,989 | £760 | 4.5% |
Northampton | £189,569 | £705 | 4.5% |
Port Loop | £215,553 | £799 | 4.4% |
East Whitlawburn | £152,028 | £550 | 4.3% |
Granton waterfront | £276,275 | £974 | 4.2% |
Aylesbury Now | £553,956 | £1,916 | 4.2% |
Bolton | £163,550 | £553 | 4.1% |
Chatham Waters | £241,532 | £805 | 4.0% |
Meridian Water | £408,149 | £1,349 | 4.0% |
Old Kent Road | £563,027 | £1,756 | 3.7% |
Elephant & Castle | £613,137 | £1,883 | 3.7% |
Stockport Town Centre West | £229,792 | £680 | 3.6% |
Wembley | £493,263 | £1,402 | 3.4% |
Chesterfield Waterside | £197,468 | £551 | 3.3% |
Acton Gardens | £551,562 | £1,504 | 3.3% |
Old Oak Common | £541,188 | £1,472 | 3.3% |
North Quay Hayle | £265,788 | £713 | 3.2% |
South Kilburn | £906,158 | £2,016 | 2.7% |
Hunstanton | £299,441 | £598 | 2.4% |
Earls Court | £1,128,754 | £2,212 | 2.4% |
Property market data sourced from PropertyData | |||
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