Top 10 Buy – To – Let Hot Spots In The UK. A True Reflection?

Top 10 Buy – To – Let Hot Spots In The UK. A True Reflection?

Top 10 Buy – To – Let Hot Spots In The UK. A True Reflection?

I came across an article on the Telegraph newspapers website titled The UK’s top 10 property buy – to – let hot spots.

The article was focusing on the top 10 towns and cities that offer the best rental yield. Now for those unsure what a rental yield is, it is the percentage income worked out from the average house price against the yearly rental income. The Telegraph has been assisted in this matter by high end estate agency Savills and the UK’s number one property website, Rightmove.

The top 10 is as follows:

1. Newham, East London
Average House Price: £222,000
Rental Income: £16,800
Gross Yield: 7.6%

2. Oxford, Oxfordshire
Average House Price: £237,000
Rental Income: £14,900
Gross Yield: 6.3%

3. York, North Yorkshire
Average House Price: £149,000
Rental Income: £9,400
Gross Yield: 6.3%

4. Ealing, West London
Average House Price: £289,000
Rental Income: £17,000
Gross Yield: 5.9%

5. Southwark, South London
Average House Price: £364,000
Rental Income: £21,400
Gross Yield: 5.9%

6. Cambridge, Cambridgeshire
Average House Price: £191,000
Rental Income: £11,000
Gross Yield: 5.8%

7. Brighton, West Sussex
Average House Price: £225,000
Rental Income: £12,700
Gross Yield: 5.6%

8. Canterbury, Kent
Average House Price: £168,000
Rental Income: £9,200
Gross Yield: 5.5%

9. Guildford, Surrey
Average House Price: £259,000
Rental Income: £14,100
Gross Yield: 5.4%

10. Wandsworth, London
Average House Price: £400,000
Rental Income: £20,000
Gross Yield: 5.1%

The above average house prices and rental incomes are based on two bedroom properties in those towns and cities.

I feel that there are some towns and cities that have been overlooked in this buy-to-let ‘hot spots’, namely Findahome Online’s home city of Stoke-on-Trent.

The average price for a Two Bedroom House in Stoke-on-Trent is approximately £55,000 – £60,000. A Two Bedroom House in Stoke-on-Trent will achieve in the region on £400 per calendar month. On my calculations, this gives a gross yield of approximately 8%. On these figures, this would put Stoke-on-Trent at the top of the buy-to-let ‘hot spot’ chart. High rental yields are not uncommon in the North of England and the Midlands. Other areas that I would expect to have good rental yields are Burnley, Blackburn, Chester and Hull. I could go on and on!

I enjoyed reading the Telegraph’s article, but do suspect that the places have been chosen on what they look like and where they are based geographically. There does seem to be some bias towards the South East. Would an article showing photographs of northern industrial cities and towns have had the readability that this article had, with attractive photographs of the areas featured?

I very much doubt it. Had the Telegraph looked at the facts, I think we would have had a very different looking top 10. Am I right, or just a biased Northerner?

You decide!!

Findahome Online Lettings are a Letting Agent based near the fine North Midlands city of Stoke-on-Trent.