Liverpool is the latest buy-to-let hotspot

Liverpool is the latest Northern city in the UK to be named the number one buy-to-let hotspot, research by Private Finance shows.

Liverpool is the latest buy-to-let hotspot

The city offers rental yields of 8% once mortgage costs are taken into account, and the area offers low average house prices and strong rents according to the research.

Liverpool is closely followed by Nottingham with rental yields of 5.6% and Coventry at 5.4%.

Just three of the top ten buy-to-let hotspots are in the Southern coastal towns.

Within the top ten buy-to-let hotspots, average interest only mortgage costs vary from £5,940 in Blackpool to £13,548 in Bournemouth.

Shaun Church, director of Private Finance, said: “Landlords can optimise rental yields by choosing their buy-to-let location carefully.

“Investors should look for areas with strong rental demand. Larger cities and university towns generally have better performing rental markets: this will help to avoid lengthy void periods that can damage landlords’ profitability.”

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