Top Buy to Let Locations 2022 | Best Rental Yields

Manchester

There is no surprise that Manchester often nicknamed the ‘New London’, generates some of the best rental yields in the country. The city is roaring with myriad job prospects and a thriving student scene. Manchester is one of the largest university cities in the UK with five universities. Therefore, levels of demand in Manchester, although elevated, are sustainable.

Many investors are keen to invest in this Northern Powerhouse, which is the biggest economic area outside of London. The city has generated record-high rents of £856 PCM, on average. There is no indication that the market will dip any time soon.

Property prices will continue to increase due to population growth, an expanding student population and the extensive regeneration schemes underway. As a result, this will positively impact the capital appreciation of a property. Manchester is also home to MediaCityUK, the fastest-growing centre for tech and media. Oxford Economics predict Manchester to have the highest economic growth over the next five years, with a GVA growth rate of 16.4%. Interestingly, this is the highest in the country. The strengthening economy will have a positive influence on the property market.

Birmingham

The regeneration strategies in place for the next decade will transform Birmingham. The Big City Plan will create over 50,000 new jobs in the city. In addition, the Commonwealth Games will act as a stimulus for strengthening the economy. The Games can bring £1bn worth of economic benefits to any hosting city. Previously, the city of Manchester saw incredible city centre growth after hosting the Games in 2002. Birmingham will soon benefit from the tourism industry and amplified job prospects.

Furthermore, the HS2 will immensely benefit the property market of Birmingham as it transforms the city into a commuter hotspot. Once implemented, it will only take commuters 38 minutes to travel to London. Property prices in Birmingham are much lower than in London, £214,696 vs £648,942. Therefore, the London exodus will continue as more people look to move to a cheaper alternative to living in the Capital. The city is known to deliver exceptional returns and some of the best rental yields. The city has an impressive graduate retention rate of 50%. In addition, over 60% of the population is under 35.

Nottingham

Nottingham is home to the University of Nottingham and Nottingham Trent University. Accordingly, the city benefits from a considerable student population, driving tenant demand. It is also home to the largest teaching hospital in the UK, the Queens Medical Centre. QMC employs 6000 workers, creating significant demand for housing from skilled professionals.

Subsequently, the city has some of the best rental yields in the UK at an astonishing 11.30%. Landlords are fortunate to be surrounded by high-quality tenants, including those working at the headquarters of Boots and Experian positioned in Nottingham. The Boot’s Enterprise Zone is a new £8m project which aims to drive innovation in the city.