The relative stability of the UK economy is good news for property investors, and while the market continues to provide outstanding returns due to historically strong tenant demand, many investors are starting to wonder where in the UK is the best place to buy-to-let?
The relative stability of the UK economy is good news for property investors, and while the market continues to provide outstanding returns due to historically strong tenant demand, many investors find themselves looking for the next property hotspot.
To decern this answer as to where to invest next, we must ask two simple questions. Where in the UK has the highest rental yields, and where are prices rising the quickest?
Data from the Office for National Statistics (ONS) show that the East Midlands has experienced the highest annual rental growth through February 2023, at 4.9%. With an annual growth rate of 4.8%, the North West came in second, followed closely by London and the South West.
In terms of the best rental returns, Zoopla has indicated these top five areas:
- East Ayrshire 8.48% (Scotland)
- Burnley 7.92% (North West)
- Hartlepool 7.64% (North East)
- Blaenau Gwent 7.02% (Wales)
- North East Lincolnshire 6.72% (Yorkshire)
In terms of house price growth, the house price index indicates the following figures:
North East – 10%
West Midlands Region – 9.9%
East Midlands – 8.6%
North West – 7.2%
South West – 7.1%
It's clear from these Q1 2023 findings that the North of England still offers the best opportunity for investors, with both strong returns and capital appreciation.
The UK property market represents one of the best option for you to reach your objectives if you're looking for a financial investment that offers consistency, solid returns, price growth, and a growing passive income.
If you'd like to find out more about investing in the UK property market, speak to a member of the Compare Yields team today.