The towns and cities in the UK with the highest tenant demand

Aerial view of Newport City, South Wales

Want to maximise rental yield? Consider investing in buy-to-let property in Newport.  

Recent figures show that the combination of lower levels of available stock and high tenant demand make the south Wales city an excellent buy-to-let investment opportunity.

When looking to invest in buy-to-let properties, landlords should consider a combination of high demand, an affordable initial cost and a good rental yield in order to maximise a return.

The research from Howsy revealed Newport as the city with the highest tenant demand in the UK, with 35% of all rental homes listed on the likes of Zoopla,  Rightmove and other property portals were already let. 

Joining Newport in the top five, were Bristol at (34%), Nottingham (33%), Cambridge (33%) and Belfast (25%).

Making up the top 10 were Plymouth (23%), Portsmouth (23%), Bournemouth (23%), Leicester (18%) and Manchester (18%).

At the other end of the spectrum, Aberdeen was the least sought after area for rental properties with tenant demand at just 5%. Swansea had 8% of properties let as a percentage of total properties listed, while Leeds – a city often touted as the next big buy-to-let investment spot – had just 9%.

London has its own buy-to-let ecosystem, with demand fluctuating hugely between boroughs. Bexley, Bromley, Sutton and Lewisham were the most sort after boroughs for tenants with 38% of all rental stock listed online already being taken in these areas.

Merton (32%), Croydon (31%), Greenwich (30%), Haringey (29%), Enfield (29%) and Kingston (27%) are also popular.

Properties in these areas are reasonably affordable compared to more central boroughs, as evidenced by the drop in demand in inner city locations; Kensington and Chelsea (7%) and Westminster (7%) had the lowest demand while Camden (11%), the City of London (12%) and Hammersmith and Fulham (13%) all ranked low.

Calum Brannan, founder and CEO of Howsy, said: “The buy-to-let sector may have had a rough ride of late but the UK rental market is still heavily relied upon by many in order to put a roof over their head and as a result, many cities still provide a great opportunity for buy-to-let investors due to the lower levels of available stock and consistently high tenant demand. 

“When looking to invest, this combination of high demand, an affordable initial cost and a good rental yield should all be considered in order to maximise a return. For those that do their research and tick these boxes, bricks and mortar remains a very sound investment despite attempts to dampen the financial return via stamp duty hikes and changes to tax relief.

“Hopefully, a newly refreshed Government will realise that the buy-to-let landlord is the backbone of the UK rental market and we need to encourage investment into the sector rather than deter it.”

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23rd January 2020