Southampton is the hottest buy-to-let property spot in England and Wales, according to research by a leading high street bank.
Buy to let landlords can expect an average gross yield of 7.82% on a private rented home costing an average £138,311 and returning a monthly rent of £901.
The port city on Hampshire’s south coast beats plush Central London post codes like Westminster, Kensington and Chelsea, for buy to let value.
The London districts only just managed to nudge their way in to the top 50 buy to let hotspots despite having the most expensive homes in the table – with Westminster ranked 43 with an average home fetching £767,112, average rents of £2,578 and a gross yield of 4.03%.
Kensington and Chelsea only managed 50th, with the most expensive average home prices (£1,090,943) and rents (£3,033) yielding 3.34%.
The cheapest place for property investors in the top 50 is Kingston upon Hull – at third in the table.
Westminster has the highest density of buy to let homes at 37.56%, while Ipswich, ranking 41, has the lowest at 18.75%.
Southwark is the highest ranking place in the capital – at 13th in the table.
The figures were compiled by HSBC Bank, and a spokesman explained yields in London were comparatively low due to the high cost of homes.
Top 10 Buy to Let Hot Spots in England and Wales by Yield
| Location |
Buy to let as % of housing stock |
Average Property Price |
Average Rent (Monthly) |
Rental Yield (Gross) |
|
| 1 | Southampton |
23.42% |
£138,311 |
£901 |
7.82% |
| 2 | Blackpool |
24.16% |
£75,943 |
£494 |
7.81% |
| 3 | Kingston upon Hull |
19.02% |
£69,519 |
£450 |
7.77% |
| 4 | Manchester |
26.85% |
£102,631 |
£650 |
7.60% |
| 5 | Nottingham |
21.64% |
£83,313 |
£524 |
7.55% |
| 6 | Coventry |
19.02% |
£104,970 |
£624 |
7.13% |
| 7 | Slough |
23.07% |
£171,581 |
£975 |
6.82% |
| 8 | Oxford |
26.11% |
£244,893 |
£1,375 |
6.74% |
| 9 | Liverpool |
21.75% |
£91,012 |
£498 |
6.57% |
| 10 | Portsmouth |
22.28% |
£141,971 |
£775 |
6.55% |
