The best places in the UK for landlords to invest in property right now.
In 2021, the most profitable areas for landlords to invest in property are in the north of England.
According to new study conducted by Coulters Property, an award-winning solicitors and estate agency firm, landlords may expect a 2.98 percent return on investment (ROI). Preston, Lancashire’s market town, has been named the most profitable city to buy a home, with average house prices of £176, 378 and average rental costs of £981 PCM, yielding an annual profit of £5, 256 – or £438 per month.
Coventry, in the west midlands, comes close behind in second place, with a slightly larger profit of £6,033 per year, but a 2.74 percent overall return on investment.
Meanwhile, investors have found Scotland to be exceptionally lucrative, with three Scottish cities, Glasgow, Dundee, and Paisley, all ranking in the top ten.
According to the study, Glasgow, which is placed third, provides investors an annual profit of £4,836, with a 2.67 percent return on investment.
Dundee returns £3,965 per year with a 2.47 percent return, whereas Paisley returns £2,746 per year with a 2.12 percent return.
Swansea, in southwest Wales, is ranked fourth, with a profit of £4,478 per year and a return of 2.54 percent.
Homes in Manchester will make £5,015 per year with a return on investment of 2.14 percent, while homes in Leeds will make £4,339 per year with a return on investment of 1.90 percent.
York comes in tenth place, with a profit of £5,405 and a return on investment of 1.85 percent.
Stoke on Trent is placed tenth, with houses yielding an annual profit of £2,481 and a return on investment of 1.73 percent.
Researchers calculated the ROI by looking at average property prices in each city and calculating mortgage repayments based on a 35-year term, a 20% deposit, and a 3% interest rate.
The annual amounts were calculated and translated into a percentage of the overall cost of a property to give the ROI after comparing the monthly repayment costs to compute the average monthly rental prices.
According to the study, which looked at average house prices and profits across all cities, there is a significant difference in ROI between homes in England and Scotland.
Scotland, according to the findings, has a significantly larger offer. “Brinkwire News in Condensed Form.”