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Buy to Let

Northern areas offer best buy-to-let returns

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
20/03/2015

The north of England offers the best returns for buy-to-let investors, research has found.

The study from buy-to-let lender BM Solutions found a distinct north-south divide when it comes to investor returns.

The North region saw the highest returns during the second half of 2014, with a typical investor receiving a return of 6.8%. The North West saw the next biggest returns at 6.4%.

This compares to 4.7% in London and 4.9% in the South West of England.

Returns in Wales were 6%, in Scotland the average was 6.3% and 6.4% across Northern Ireland.

The average deposit needed to purchase a buy-to-let property was £51,344 across the UK, but again there were big differences across the UK. In London, buy-to-let investors put down an average of £120,241 which was more than four times the £26,241 average deposit in the North.

Tenants in Yorkshire and Humberside pay lower rents than any other area of the UK. The survey found tenants in these areas paid an average rent of £510 each month.

This compares with an average of £718 per month across the country as a whole.

London was home to the highest rents with an average of £1,422 each month.

Phil Rickards, head of BM Solutions, said the rental market was going from strength to strength.

“Demand for private rental accommodation remains strong, which continues to push rental prices up,” he said

“However our figures show that even with increasing rental prices, the average yield investors receive has eased, driven by the increase in prices for buy-to-let properties.”


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