The buy-to-let investor has seen his share of misfortune in the past few years due to the economic crash and the bursting of the housing bubble, but due to a combination of financial and social circumstances, buy-to-let is slowly but surely making its way back into the list of profitable property investments.
Location, of course, is everything and knowing the best places in the UK to purchase a house for letting will give investors a better chance of succeeding. If you want to get in on the buy-to-let market for the first time, or you want to expand an existing buy-to-let empire, it pays to know where people will pay top prices for your property.
So let’s have a look at the top five postcodes for buy-to-let, as compiled by FindAProperty.com.
BlackpoolBlackpool may still be fighting back from its somewhat cheesy reputation, but it’s still one of Britain’s top holiday locations and for good reason. Blackpool has plenty of attractions – from the world-famous Pleasure Beach Theme Park to the selection of museums at the dynamic Promenade – that cater to tourists and residents alike.
It also has at least five universities within the city, making it a prime spot for students and academic professionals, all of which is manna from Heaven for the savvy buy-to-let investor. Blackpool has an international airport, trams and railway systems that make it a friendly city for commuters.
Quick facts: Blackpool’s total land area is 13.5 sq mi with an estimated population of 140,000. The average home asking price is £161,722 and the average rental cost is approximately £720 a month.
Kingston upon Thames
Kingston upon ThamesRich with cultural and historical landmarks, Kingston upon Thames is home to a number of art galleries and museums, parks and gardens and the romantic and serene River Thames
Kingston upon Thames has plenty of retail centres, with High Street shops and boutiques alike. Having a robust environment is good for the buy-to-let industry, especially with workers, employees and professionals looking to find flexible housing options.
Quick facts: Kingston upon Thames has a population of 147,273 according to the 2001 Census with a land area of 3,748 ha. The average home asking price is £420,469 and the average rental cost is approximately £1,843 a month.
This town on the East Coast of Scotland is a four mile stretch of shops, homes and attractions with the Firth of Fourth to its southeast. It is the home of the Ravenscraig Castle, the Adam Smith Theatre and the Kirkcaldy Museum & Art Gallery. The town also re-opened the Kirkcaldy Harbour in October 2011.
Kirkcaldy is in the centre of six nearby towns, making it a prime and idyllic location for buy-to-let properties.
Quick facts: Kirkcaldy is a small town with a 6.9 sq mi land area. There are 49,000 city inhabitants according to the 2001 Census. The average home asking price is £198,111 and the average rental cost is £856 a month, according to FindAProperty.com
East LondonThis bustling side of England and the United Kingdom’s capital is seeing increased activity as preparations for the 2012 Summer Olympics continue with the Thames Gateway as part of the main attractions.
It is also the home of two large universities: the Queen Mary, University of London and the University of East London. Rental demand is high all-year round due to the city’s heavy activities as one of the world’s busiest urban zones in all of Europe.
Quick facts: A population of 1,400,000 people live on the city’s 115.8 sq mi land area. The average home asking price is £275,844 and the average rental cost is £1,147 a month.
ManchesterManchester sits within one of the busiest metropolitans in the United Kingdom. It is the fifth-largest financial centre outside of London with four major universities situated in the city.
The Manchester financial centre is the home of local, regional and international companies alike making it a prime location for buy-to-let properties. Students and professionals in the academic field also add to the demand for rentals.
Quick facts: The Office of National Statistics estimates the population of Manchester to be 498,800 living within the 44.7 sq mi land area. The average home asking price is £141,435 and the average rental cost is £575 a month.