By A new study by money.co.uk mortgages has analysed the change in UK house prices & rent prices, estimated gross rental yield and rental demand to reveal the best areas to invest in rental property in England and Wales.
| Rank | Area | Annual house price difference | Annual rent price difference | Estimated gross rental yield | Rental demand /10 | Rental returns score /10 |
| 1 | Leeds | 14.9% | 13.6% | 3.9% | 6.6 | 9.2 |
| 2 | Bristol | 14.4% | 14.3% | 3.9% | 6.7 | 9.2 |
| 3 | Bolton | 13.6% | 10.9% | 3.8% | 7.5 | 9.1 |
| 4 | Tameside | 14.9% | 9.2% | 3.6% | 7.2 | 9.0 |
| 5 | Milton Keynes | 16.2% | 8.9% | 3.7% | 6.1 | 8.8 |
| 6 | Salford | 11.9% | 9.7% | 4.4% | 8.9 | 8.7 |
| 7 | Gloucester | 12.3% | 10.8% | 3.6% | 6.8 | 8.3 |
| 8 | Sandwell | 12.0% | 9.4% | 4.1% | 6.5 | 8.3 |
| 9 | Oldham | 14.7% | 8.7% | 3.8% | 5.5 | 8.3 |
| 10 | Pendle | 15.4% | 4.7% | 4.2% | 6.3 | 8.2 |
Leeds, Yorkshire, ranks as the joint-top best place for property investors to purchase rental properties, alongside Bristol.
Leeds has recorded some exciting statistics over the last two years, making it an attractive location for buy-to-let investors.
The average house price in Leeds last year was £246,876, a 14.9% increase from 2021.
The average rent in Leeds has increased by 13.6% to £795 per month (£9,540 annually), which brings us to an estimated 3.9% gross rental yield.
Leeds is known as the unofficial capital of Yorkshire, and for good reason. Built around the River Aire in the eastern foothills of the Pennines, the city is bursting with life and culture, home to four universities and the renowned Leeds Kirkgate Market, one of the largest indoor markets in Europe.
Leeds is also one of the few UK cities to have high-rise buildings, offering a breathtaking skyline.
Bristol also ranks as the best place to purchase rental properties in England and Wales.
Bristol recorded a 14.4% increase in average house prices and a 14.3% increase in average rent. We calculated the estimated rental yield of a property in Bristol at 3.9%, using average house prices and rents.
Bristol has also recorded steady increases in population, income, and employment over the last two years.
Situated on the River Avon, Bristol is a modern city most known for being the first British city to be awarded the European Green Capital Award.
The Clifton Suspension Bridge is a major landmark of the city and arguably its most famous.
In 2014 and 2017, Bristol was named the best city in Britain to live in. Bristol’s main business and economy are built in creative media, electronics, and aerospace.
Bolton ranks in third place and is a great place to invest in buy-to-let properties, with a potential rental yield of 3.8% on its average house price and rent.
Bolton saw a 13.6% increase in house prices from 2021 to 2022 and has also seen solid rental demand statistics, from a growing population to massive increases in employment and income in the area, earning it a rental demand score of 7.5/10.
Bolton has consistently ranked among the happiest places to live in the UK in recent years, taking the 25th spot in 2022.
Bolton offers a rich topography of countryside, moorland, and commercial centres, alongside some stunning architecture which has been featured in numerous film productions.
The borough is home to major manufacturing and logistics companies.
Also worthy of note is Blackpool, the area with the best rental returns in England, with a 4.7% estimated gross rental yield alongside Salford, the area with the greatest rental demand with a rental demand score of 8.9 out of 10.
Comments