Ireland has been declared the number one location for buy-to-let investments by the international money transfer and currency specialists World First in their European Buy-to-Let League table
With regards to average rental yield, Ireland – which recorded a figure of 6.54% – has jumped from its previous position of 10th to the top spot.
This is 14 positions ahead of the UK, which recorded a rental yield of 4.91%.
However, the UK has still managed to move up six places from its previous position.
Research indicated that Ireland was the second most expensive country in Europe in terms of renting, with an average one-bedroom apartment in an Irish city costing over £11,000 a year.
Luxembourg was the most expensive at £14,000 a year.
Conversely, the purchasing market in Ireland was found to be in line with its European counterparts, with an average one-bedroom apartment costing £148,000 and a three-bedroom apartment house costing £285,000.
Edward Hardy, market analyst at World First, said: “The stamp duty surcharge, which came in this April, put a sting in the tail of buy-to-lets in the UK.
“But the government’s decision in the build up to the Autumn Statement, which will limit the number of high loan-to-value mortgages available to those investing in buy-to-let or second properties, has been the final icing on the cake.
“Therefore, savvy investors need not look too far afield for great returns.
“The resurgence seen in the Irish economy over the past few years has buoyed its property market and in particular its rental sector.
“The arrival of global tech giants like Google, Facebook and Microsoft has pushed rent prices up, creating attractive yields for buy-to-let investors.
“For UK investors, it is also important to take into account how currency swings could affect your yield.
“The fall in sterling following the EU referendum will make it more costly to buy property abroad, but will also mean a higher rental income.
“Active planning will be key to ensuring any foreign buy-to-let investments get you [more] bang for your buck.”
|
Nov 16 Rank |
Apr 16 Rank |
Country |
Average Rental Yield |
|
1 |
+9 (10) |
Ireland (€) |
6.54% |
|
2 |
-1 (1) |
Netherlands (€) |
6.35% |
|
3 |
- (3) |
Portugal (€) |
6.33% |
|
4 |
-2 (2) |
Belgium (€) |
6.32% |
|
5 |
-1 (4) |
Hungary (HUF) |
6.21% |
|
6 |
-1 (5) |
Turkey (TRY) |
6.21% |
|
7 |
- (7) |
Bulgaria (BGN) |
6.04% |
|
8 |
- (8) |
Malta (€) |
6.01% |
|
9 |
-3 (6) |
Slovakia (€) |
5.94% |
|
10 |
+2 (12) |
Latvia (€) |
5.41% |
|
11 |
-2 (9) |
Cyprus (€) |
5.41% |
|
12 |
+2 (14) |
Poland (PLN) |
5.20% |
|
13 |
- (13) |
Romania (RON) |
5.14% |
|
14 |
-3 (11) |
Denmark (DKK) |
5.04% |
|
15 |
+6 (21) |
UK (£) |
4.91% |
|
16 |
-1 (15) |
Spain (€) |
4.87% |
|
17 |
-1 (16) |
Czech Republic (CZK) |
4.84% |
|
18 |
+5 (23) |
Estonia (€) |
4.46% |
|
19 |
-2 (17) |
Greece (€) |
4.44% |
|
20 |
- (20) |
Finland (€) |
4.39% |
|
21 |
-2 (19) |
Lithuania (€) |
4.36% |
|
22 |
+2 (24) |
Slovenia (€) |
4.29% |
|
23 |
-1 (22) |
Germany (€) |
4.21% |
|
24 |
-6 (18) |
Luxembourg (€) |
4.08% |
|
25 |
-1 (24) |
Austria (€) |
3.86% |
|
26 |
- (26) |
Croatia (HRK) |
3.75% |
|
27 |
+1 (28) |
France (€) |
3.55% |
|
28 |
-1 (27) |
Italy (€) |
3.26% |
|
29 |
- (29) |
Sweden (SEK) |
3.00% 
|
