Thursday, 29th May 2014

Manchester included in buy-to-let hotspots

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A report by the bank HSBC has found Manchester to be one of the best places in the UK to purchase a buy-to-let property investment.

Manchester’s rental yield stands at 7.98pc, and offers the characteristics that make for excellent buy-to-let investment: relatively low house prices coupled with strong demand for rental property from large student and young professional populations.

Peter Dockar, head of mortgages at HSBC said: “House prices in the top-yielding locations – while still out of reach among many first time buyers – are relatively affordable for landlords investing in property and the demand from young professionals has pushed up rents and driven up the returns.

“London is often seen as the haven of property investment with many believing the streets are paved with gold. However, while the highest rents in the country are an attractive draw for landlords, high house prices in the capital squeeze yields and limit the returns available. As a result, returns can often be far more attractive in other areas so it certainly pays for landlords to do their research.”