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Bootle in Merseyside has been marked out as the best area to invest in buy to let property, taking into account yields along with second tier economic indicators such as how long rentals have been on the market and the affordability ratio.
New research from Gatehouse Bank labelled Bootle the home of the most reliable rentals. In contrast, the most vulnerable landlords were found in Winchester. In Winchester, available rentals have remained empty for 248 days while rents stand at over half of the average earnings for the area. Finally, yields are half those of the top towns and cities. In Bootle, properties were vacant for just 183 days. The average yield also stood at 5.6 per cent in comparison to Winchester’s 3.1per cent.
Tax changes such as the stamp duty surcharge and removal of mortgage interest relief have limited the buy to let market in recent years, rendering it no longer viable for yield to be the primary consideration.
However, should the study consider yield alone, Padstow, Bedford, Taunton, Shrewsbury and Salisbury comprise the list of the least attractive buy to let areas
In contrast, the North and Midlands dominated the list of reliable areas. Inverness, Stoke-on-Trent, Barnsley and St Helens all stood out as the best places to rent properties.
Overall, it was found that properties available to rent across the UK have been sitting on the market for 197 days on average. The average yield was found to be 4.6 per cent, with the average proportion of earnings to rent 37 per cent.
CEO at Gatehouse Bank, Charles Haresnape, commented: ‘What our research shows is that famous Northern hospitality is not a myth. It’s a great place not only to be a landlord but also to live, with cities in the North and the Midlands performing much better across all indicators. Rental properties are let far quicker than in the South, which is no surprise when major cities like Liverpool and Manchester are within commuting distance of smaller towns like Bootle. What’s really striking is that in the areas that performed best, rental rates were far more affordable and this correlation underscores the symbiotic relationship between renters and landlords in areas where their investments could be deemed safest.’