Buy to Let

Towns that voted for Brexit offer highest rental yields

Christina Hoghton
Written By:
Christina Hoghton

Only two of the top 20 local authority districts for rental yield voted to remain in the EU

Manchester has retained its crown as the highest yielding local authority for landlords, with rental yields of 6.8% during thee last quarter. But it was one of only two in the top 20 areas to have voted ‘remain’ in the recent EU referendum, according to LendInvest. The other was Liverpool with a rental yield of 5.4%.

The online lending business said that strong ‘leave’ towns remain the best investment for landlords, taking 18 of the top 20 districts for rental yield.

Coventry, Luton and Outer London moved up the table to take joint second spot, all of which boast a rental yield of 5.8% – and voted leave.

In terms of capital gains, the opposite is true. Only two of the top 20 districts for capital gains – Barking and Dagenham and Spelthorne (Surrey) – voted in favour of Brexit.

Christian Faes, co-founder and CEO of LendInvest, said: “It’s very interesting that the top districts for rental yield, which are often found in the North East and North West, voted so overwhelmingly for Brexit.

“The areas that have seen the best of the recent boom times have generally enjoyed the biggest house price rises, and with that offered the greatest capital gains. Perhaps it is no surprise that they were sufficiently content with the status quo to vote Remain. Areas which have seen far more modest house price rises, appear to have been more disposed to voting for the change promised by Brexit.

“Brexit may create opportunities for property investors, particularly professional and experienced ones. House prices are expected to soften, so some would-be buyers may put off buying. But they still need somewhere to live, which is good news for landlords. What’s more, if house prices do cool as predicted, then investing in property will become even more enticing.”