Bristol has become the best UK city for landlords to invest in, according to Aldermore’s new Buy to Let City Tracker.
Bristol has become the best UK city for landlords to invest in, according to Aldermore’s new Buy to Let City Tracker.
The research found that Bristol jumped to the top of the leaderboard due to its good rental prospects, a high proportion of long-term private renters available, and a low number of properties currently vacant.
While the area has seen a 6.6% annual uptick in growth on return, short-term yields sit at just 4.4%.
Manchester, Coventry, Brighton, and London have also made the top five cities for BTL investment, while Glasgow becomes the first Scottish city to enter the top 10 since the Tracker launched five years ago.
The data showed that Glasgow is providing a rental return of £471 and offers one of the highest short-term returns of 8.6%, higher than the average of 5.5%.
Brighton (4th), Portsmouth (7th), and Basildon (9th) have also made it into the top 10.
Newport and Swansea remain at the bottom in 49th and 50th place.
The average rent per room has also steadily increased; in 2021, it stood at £423, growing to £432 in 2022, and £455 in 2023.
Research by Aldermore found that 94% of landlords increased their rents in the past 12 months.
“Landlords have experienced an unprecedented year with rising interest rates, rising inflation, all while navigating their way through property legislation changes,” said Jon Cooper, head of mortgages at Aldermore.
“Yet, the demand for rental accommodation has never been so high.
“Landlords play an important role in the UK economy, providing homes for those who are yet to get on the housing ladder or want to rent.
“Usually, a few regions dominate the leadership board, but this year we see for the first time a wider range of areas making it into the top 10.
“Landlords continue to do their research, working with their brokers to review their portfolios and ensure they are getting the best value for their properties, whatever obstacles may come their way.”
The Tracker analyses five key indicators that impact BTL desirability: average total rent, the best short-term returns through yield, long-term return through house price growth over the past decade, the lowest number of vacancies as a proportion of total housing stock, and the percentage of the city population in the rental market.
