Tax changes and the removal of mortgage interest relief have coerced landlords into becoming slaves to the property market as yields plummet.
However, recent studies show that Bootle, Merseyside was the best place for landlords in the UK due to the boroughs rental values and yields.
The North and The Midlands ranked top with Bootle having an average yield of 5.6%, potentially 7% depending on property choices – compared to an average yield of 3.1% in Winchester. Research shows that properties for rent in Bootle were on the market for a mere 183 days.
After analysing the purchase price and rental income of two-bedroom apartments in towns across the UK, studies revealed that Bootle offered the best returns on investments. The same study reports that areas considered as less affluent actually ranked in the top 10, making them unrivalled property investments.
The average 2-bedroom house price in Bootle is £65,000, yet the average monthly rent costs £450 – producing the best returns for landlords.
Bootle, a city famous for its regeneration abilities during the war and home to treasured TV personalities, is fast becoming a gold-mine for property investors.
Research from Gatehouse Bank labelled Bootle the ‘home of the most reliable rentals’.
Charles Haresnape, CEO of Gatehouse Bank comments “What our research shows is that famous Northern hospitality is not a myth. It’s a great place not only to be a landlord but also to live, with cities in the North and the Midlands performing much better across all indicators”.
UK major cities ranked poorly in comparison to the little town of Bootle. With Birmingham placing 75th and London placing 89th, the high property prices shrinking yields in such cities has led to an influx of landlords and property investors heading north.
The study that describes Bootle as ‘the best place for landlords in the UK’ doesn’t just focus on yields, but instead looks at the second tier of economic indicators such as the amount of time a property spends on the market and the affordability ratio between average salaries and rental costs.
Residents in Edinburgh and London pay the highest rental costs compared to their average salaries whilst the top three cities for affordability are all located towards the north of the country, with earnings-to-rent ratios at three times less.
Research by Gatehouse Bank discloses that properties available to rent in the UK generally spent 197 days on the property market, also stating that the average yield was 4.6%. Bootle significantly exceeds these statistics with property on the market for 183 days and a yield of 5.6%, the little town located in Liverpool is unparalleled.
Hopwood House are specialists in property investment, with a wide range of UK property investments in major towns and cities across the UK including property investments in Liverpool, Leeds, Manchester and Sheffield.