As a property investor you need to think ahead. Despite all of the uncertainty in the UK with Brexit and the hammering that the buy to let sector has taken over the last few years, the demand in the private rental sector remains high.
In a recent report from Seven Capital, the UK property investment and property development company, they identified the top 10 cities in the United Kingdom which represented the best buy to let investment locations for 2020.
At the top of the list for the best buy to let investment locations was Birmingham. In 2018 Birmingham was able to attract the largest number of foreign investments outside of London and the South East.
Birmingham has grown and continues to grow. It now has a population of 1.2 million and is the fastest growing UK city next to London. The rental yields in Birmingham in 2019 have ranged from 4.4% to 5.3%.
There has been a lot of investment in Manchester and many people now are targeting the city as one of the best places to work and live. Since 2014 the property price growth is 22% and rental yields are good peaking at 7.3% in some areas.
You can find some of the best buy to let investment yields in Liverpool. Certain postcodes have achieved yields of 8.2% and the yields have risen between 12% and 15% over the last 5 years. The city is undergoing regeneration and attracting a lot of new people.
Although Sheffield does not have the highest house prices it does have some amazing rental yields. The average rental yields in Sheffield are currently around 7.3%. Sheffield has had a revamp of around £480 million in the last few years improving its amenities and overall appeal.
There is a severe shortage of homes in Leeds due to the growth of their population. This has resulted in an increase in property prices since 2014 of 17% and the rental yields have risen as well now averaging 7.6%.
A lot of investors believe that Leicester is a top buy to let investment location. And they are right. The city has a severe housing shortage and the private rental sector is very strong. These days the rental yields are averaging at around 7.2%.
Nottingham is a city because it is centrally located and has direct access to a number of UK cities. Nottingham is popular with professionals and students and the demand for private rentals is high.
It is no surprise to see Oxford in the top ten. Not only do they have one of the most famous universities in the world but it has excellent connectivity to Heathrow, Cambridge and London. It is the 3rd highest UK city for growth.
You should certainly be looking at Cardiff as a buy to let investment location. It is one of the fastest growing UK cities. There has been a great deal of regeneration over the last few years. The average rental yields in Cardiff range from 4% to 6%.
Although the capital has seen dramatic swings in house prices you cannot ignore it. London was voted the best city in the world by Trip Advisor and is also the number one city in the world to be a student. There is strong demand in the rental market and this is definitely going to be there in 2020.