Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not regulate most Buy to Let Mortgages.

These articles come up all the time on every single news platform you can imagine. Of course, the best place to buy is dependent on what your ultimate goals are. Are you looking to find the highest yield? Do you want to buy a cheap property you can renovate? Do you want to buy a property that you will ultimately retire to? Are you going to use a letting agent? or do you need to buy locally to make it easier to manage?

We all know that Bristol is the best city in the UK, but it has also recently been named the best city in the UK for Buy to Let Investment. Manchester had previously held on to the top spot, but I can only imagine that being on the wrong side of the Pennines has finally caught up with it (you may have guessed that I’m from the correct side of the Pennines).

When looking into what makes the best city for Buy to Let investment, they look into:

  • Average total rent
  • Short-term returns through rental yield
  • long-term returns through house price growth
  • the lowest number of vacancies as a proportion of total housing stock
  • percentage of the city population in the rental market

Bristol was top of the table due to its continuing property growth, averaging an increase of 5.1% annually, a low rate of long-term vacancies (0.6%) and a high proportion of the population renting privately (27%).

Other notable cities were the University Cities of Oxford and Cambridge who were ranked fourth and second in 2021.

Surprisingly for me, Luton had leapt up into the top 10 with property prices rising by an average of 5.2% last year.

London is also in the top 10 due to the stability and constant demand from tenants.

In Scotland, the major cities of Edinburgh and Glasgow rank highly due to a lack of available property, which in turn leads to greater demand.

If you are looking to purchase or a mortgage for a House of Multiple Occupation (HMOs) then you want to be looking for cities with plenty of young professionals, and students. It’s no surprise that the best cities for HMOs are:

  • London
  • Birmingham
  • Bristol
  • Manchester
  • Leeds

Historically, cities such as Liverpool and Hull were considered to be the best for buy to lets due to low property prices and high yields. Unfortunately, due to the previous, the cities have been swamped with investors and as such there are lots of properties for renters to choose from and that oversupply has resulted in lower rental returns.

Of course, this is purely looking at numbers. There are no personal aspects taken into account with these tables. Many first time Landlords care less about the yield and more about how easy it would be to manage going forward. Looking locally to their own residence can have a major appeal, regardless of yield, as you may feel more comfortable keeping a closer eye on your bricks and mortar investment.

There are a lot of aspects to consider, one of them being ‘who is the best Broker to engage to find the best mortgage and to bounce ideas off?’ We may be a bit biased here but we certainly think we can tick that box.

Next Steps

If you are looking to purchase an investment property then the best thing to do is to book an appointment and we can run you through your options.

Do give us a call on 0117 332 5197. Our initial conversations usually last around 15 minutes.

Alternatively, you can email enquiry@lloydwellsmortgages.co.uk and let us know how we can help you.

We will discuss:

  • How much you can borrow
  • What that will cost
  • What fees can you expect
  • How Lloyd Wells Mortgages work
  • What insurances you will need
  • What documentation you will need to provide
  • Next steps

Your home may be repossessed if you do not keep up repayments on your mortgage.