Better buy to let returns in less trendy areas

Buy to let has been a booming investment opportunity for savvy entrepreneurs for many years, and whilst there were problems in the buy to let market during the recession and the financial crisis, as there were in other sectors.

Things have once again started to show signs of improvement, with landlords now able to look forward to building their portfolios again and making money from their astute investments in the property market.
According to one recent report landlords could make their money work even harder for them by being more careful about the location of the properties that they plan to buy. It may be tempting for many landlords to consider buying properties in trendy, fashionable areas, where they may hope to get more interest from potential tenants and may even think they will get a higher class of tenant.

However, the report suggested that landlords could fare far better by looking into properties that are outside of these trendy areas.
The data comes from a report that was recently compiled showing the top one hundred towns for great returns on buy to let properties. The figures were compiled by FindaProperty.com, and showed that the town that offered the highest returns on investment property was Blackpool.

In fact, the listing showed that the majority of the top twenty five areas for higher returns were based on postcodes that were not considered property hotspots.

A spokesperson for FindaProperty.com stated: ”This shows that the best places for high gross yield are those with lower housing costs, a changing population and in particular if they have one or more universities. London is strong because it’s under population pressure and has multiple universities and therefore even satellite areas such as Twickenham do well.”

”The other places where gross yields tend to be high are where there is a large inbound ethnic population getting on its economic feet and rental demand is high but house prices usually lower than the average.”