Best cities to be a landlord in revealed
Oxford has been named the best city in the UK for buy to let investments.
The university town topped the list of 25 cities in a study by mortgage lender Aldemore.
The mortgage lender’s new Buy to Let City Tracker tool looked at five indicators – average total rent, the best short-term returns through yield, long-term return through house price growth over the past decade, the lowest number of vacancies as a proportion of total housing stock, and percentage of the city population in the rental market.
The south east dominated the top 10, with London in fourth place, Brighton in ninth and Milton Keynes in at 10.
Ahead of London in second and third place were Manchester and Edinburgh, with Norwich completing the top five.
Yorkshire cities lagged behind; the highest placed city in the county was Leeds at 20, with Bradford in 23rd and Sheffield 22nd.
The West Midlands fared better with Birmingham and Coventry performing well, although Wolverhampton was bottom of the list.
With its two universities, Oxford has always been attractive to buy to let investors, and with 28% of the town’s population renting – the highest on the list – low void periods and a preference among renters based there for longer tenancies, its appeal continues.
The city also has an above average rental price (on average £596 per room per month) and offers good investment with property prices having increased yearly by an average of 4.8% in the last 10 years.
Oxford¹s downside is that short term return through yield is one of the lowest on the list; Hull claimed the top spot for the best short-term returns through yield.
London is top for average total rent,Cambridge was number one for long-term house price growth, Cardiff has the lowest number of housing vacancies.
Damian Thompson, Director of Mortgages, Aldermore commented: “Aldermore’s Buy to Let City Tracker shows there are still great short and long-term investment opportunities for landlords. The number of people renting in the UK has been rapidly growing, up 1.7 million in ten years, so private landlords are an increasingly central part of the housing market as supporting a robust and strong Private Rented Sector becomes more essential.”