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Landlords buying in high-yield areas as hedge against inflation - claim

Buy to let landlords are increasingly looking to the highest yielding areas of the country as a way to maximise their returns and hedge against inflation.  

That’s the view of lettings agency Hamptons, which says that so far this year 71 per cent of investors bought in the 50 per cent highest yielding areas of the country, up from 57 per cent a decade ago.

The agency says this is also one of the reasons why nearly three quarters of London-based landlords bought their buy to lets outside the capital this year, where yields tend to be higher, up from less than a quarter a decade ago.

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The North East is the buy to let hotspot where investors purchased 27.7 per cent of homes sold in the first three months of this year, more than twice the share bought by first-time buyers.

It’s also the region that saw the biggest year-on-year rise in buy-to-let purchases.  This may be unsurprising given that it offers the highest gross yields in the country, averaging nine per cent compared to 6.5 per cent across England and Wales.

A staggering figure has emerged for Middlesbrough, which topped the local authority list of buy to let favourites – 58 per cent of homes sold in the area over the last six months were purchased by an investor.  

With an average gross yield of 8.9 per cent, Hamptons says it’s the 13th highest yielding local authority in England and Wales.  While Northern areas dominate the list, six Southern areas made it into the top 15, including London’s most affordable borough, Barking and Dagenham.

As with the owner occupier housing market, a lack of stock available to buy has meant that investors are increasingly having to pay over the asking price. Some 40 per cent have had to pay over the asking price for their new buy to let. 

For the first time since Hamptons’ records began, the average investor is paying over 100 per cent of the asking price for a buy to let in England and Wales.

 

Local Authority

Region

% properties bought by a landlord

Average gross yield

1.

Middlesbrough

North East

58%

8.9%

2.

Calderdale

Yorkshire & The Humber

50%

7.7%

3.

East Staffordshire

West Midlands

48%

6.5%

4.

Peterborough

East

43%

6.0%

5.

Boston

East Midlands

39%

8.0%

6.

Swindon

South West

36%

6.1%

7.

Liverpool

North West

34%

7.3%

8.

Nottingham

East Midlands

34%

7.6%

9.

York

Yorkshire & The Humber

31%

5.8%

10.

Plymouth

South West

29%

6.1%

11.

Exeter

South West

29%

5.9%

12.

Barking & Dagenham

London

28%

5.4%

13.

Derby

East Midlands

28%

6.7%

14.

Leicester

East Midlands

28%

6.1%

15.

Portsmouth

South East

26%

5.9%

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    Ok gross yields, farmer economics, any idea of nett yields or is it all free do we not factor in all costs & expenses to arrive at a profit or loss.

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    Depends where you live, I don't want a property 100s of miles away, I'm off into Norwich this morning, 14 miles from home to look at a roof leak, now wouldn't that be a pain if that property was in the north east of England.

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    I’ve got a selection of properties in the Norrh East and have been enjoying high yields for a long time. But there’s been no capital growth for over a decade until now as it finally creeps up.

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