Property Hotspots

It has been an interesting 12 months for the UK’s property investors, with the EU referendum and changes to the tax system down to the snap general election. As a result, landlords have had to work a little harder to find the most profitable options available in the market. And thanks to a new study from TotallyMoney.com, the UK’s best postcodes for buy-to-let yields have been revealed.

Taking a gander at the best 25 purchase-to-let hotspots in the UK, Liverpool dominated the competition. The primary top four spots on the rundown went to Liverpool postcodes, including L7, which was named the main spot in the nation for rental yields. Also, Liverpool led an aggregate of seven in the rundown. These postcodes include:

L1

This area is right at the heart of the city centre. It includes two of Liverpool’s mainline train stations, the creative hub known as the Baltic Triangle, the Liverpool ONE shopping centre, the Liverpool Ropewalks area, and Liverpool John Moore’s University. This postcode is also home to our One Wolstenholme Square, The Residence and RopeWalks developments.

L3

This vast area stretches along the city’s docks, around the North and East of the city centre, and into a good part of the Vauxhall district. This area, in particular, is currently seeing massive amounts of investment, from the £5.5bn Liverpool Waters project to the new stadium for Everton FC (one of Liverpool’s two Premier League football teams).

As well as housing projects such as the restoration of the iconic Eldon Grove, and the ultra-modern Devon House student development.

L8

Close to the city centre, this up-and-coming area just below the centre is currently seeing somewhat of a transformation. Like much of Liverpool, it’s a good place for investors to consider, with great developments like the historic Coleman’s Fireproof Depository on offer.

At Aspen Woolf, we’re not surprised that these Liverpool postcodes have ranked so highly. With its thriving population of young professionals and numerous large-scale regeneration projects in the city, it’s easy to see why the city has become such a popular place to live and, in turn, a good place to invest.

We’re also pleased to see postcodes such as Huddersfield’s HD1 (in 7th place) and Plymouth’s PL4 (in 15th place) appearing on the list. But, again, it is because we know just how much potential these less identified areas of the UK have, with developments like Crane Court in Huddersfield and Beaumont Square in Plymouth, demonstrating the kinds of high rental yields achievable.

Top 25 Buy-to-Let Property Hotspots

TotallyMoney.com has put together this handy map to help buyers see the average yields for different postcodes across the UK.

And Joe Gardiner, Head of Brand and Communications at TotallyMoney.com, had this to say about their findings:

‘Many people finance properties using a buy-to-let mortgage to boost their income. However, the recent tax changes will move several landlords to a higher tax rate, making it harder to make money from investing in property in this way.

‘While this may prevent numerous likely proprietors from getting a purchase to-let contract, the purchase to-let hotspots guide can give them where their venture will bring the best yield.’ In the current climate where tax changes are affecting profit margins, it’s important for landlords and those considering buy-to-let investments to look for these profit pockets in cities and towns that are providing higher average yields than much of the rest of the country – particularly London.

This study shows that putting careful thought into where you’re going to invest can be the smartest move.