BLOG - Revealed: best rental yield areas for buy-to-let

23 July 2019

BLOG - Revealed: best rental yield areas for buy-to-let

23 July 2019

Get The Most Out of Your Investment

If you are looking for the highest yield possible from property investments and a steady uninterrupted income stream, then look no further than the areas around North East Universities and Hospitals.

Great Yields in the North East

Almost all of the UK’s top 20 best postcodes for buy-to-let rental yields are located within close proximity to a university campus or a large medical centre, and with the North East having some of the lowest house prices you can realise a great return on any investment.

Using statistics from PropertyData, we looked at the best buy-to-let postcodes based on 12 month’s rent divided by the average property price in the area, ranking each postcode from the highest yield available to buy-to-let landlords.

Top Yields Realised Near Universities & Hospitals

We found that almost all of the top 20 buy-to-let postcodes in the UK are within easy reach of a university campus and or hospital.

Top in our study was Sunderland’s SR1 postcode for property investment with yields of 9.4%, which benefits from being in the centre of the Sunderland University campus and right next to Sunderland Royal Hospital.

The TS1 postcode close to Middlesbrough train station and Teeside University is home to yields of 9.2% and although Newcastle is seen a much more cosmopolitan city, with relatively low house prices for a major metropolis, two major universities and two major teaching hospitals the area is also a hotbed for student buy-to-lets.

It’s no coincidence that the vast majority of postcodes with the highest rental yields are found within a stone’s throw of a university campus or hospital, and for a safe bet on your investment, these are the places to look when buying.

Steady Demand

While students aren’t always the ideal tenants, they bring consistent demand via an annual flow of new arrivals, the void periods are generally much shorter, and the supply-demand imbalance puts the landlord in control when choosing a tenant.

As a result, these hot pockets of buy-to-let demand offer landlords an investment option that is almost certain to provide a healthy return and a steady income.

Let the Professionals Deal with the Day to Day

Dealing with students can be a chore, no one wants the late-night phone call about a minor issue or having to move old students out and new ones in every year. If you don’t live near or have a busy life and a day job it can eat into your time and profit.

Therefore, if student lets and the high yields which can be derived from these properties are of interest, we would urge you to seriously consider an experienced professional property management company like Bricks & Mortar. By using the Bricks & Mortar property management team you can easily delegate all of those difficult to sort jobs and many of the problems associated with dealing with student tenants.

From the late-night phone calls about lost keys to the erratic overreactions to minor issues, our experienced team have seen it all before and take it in their stride. They also ensure that the students keep to their agreement and don’t cause you any problems.

However, the major advantage comes at the end of each academic year, with a great reputation and huge brand recognition from North East students Bricks & Mortar have a bank of eager prospective tenants waiting to move in taking the stress out of changeovers and minimising disruption to the landlord.

For more information why not contact a member of our team: HERE

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