Manchester has been named as the best city for BTL investment, according to the latest update of Aldermore’s BTL City Tracker.
The North West city has reclaimed the top spot in 2024, after falling to second place in 2023.
In 2024, Glasgow rose six places to take the second highest spot while Coventry remained third.
The tracker gives cities a score based on an average of average total rent, best short-term yield returns, long-term returns through price growth over the past decade, lowest number of relative vacancies and percentage of overall population renting.
Manchester returned to the top with the best long-term property price rises of all cities - 6.5% - with a higher than average rental population.
In Manchester, 32% of locals are private renters compared to the national average of 23%.
Wigan ranked fourth after climbing 21 spots from the previous year. This was due to the city having one of the lowest proportions of vacant properties (0.6%), driving annual property price growth over the last decade (5.4%).
In contrast, London fell from 5th place in 2023 to 32nd in 2024.
Rents in the capital are still some of the highest in the country at £800, with short-term rental yields averaging at only 4%.
Jon Cooper, director of mortgages at Aldermore commented: “Landlords continuously need to be on the ball, as difficult as that can be, reviewing their portfolios and ensuring they’re getting the most out of their investments.
“There are still good returns to be made in many cities, with rental income staying steady from last year and demand remaining strong with an average of ten applicants competing for each property.”
