Where are the Buy-to-Let ‘Hotspots’ in Britain?

The buy-to-let market is a huge industry in the UK, with landlords using property as a way to maximise their investments and take advantage of the cultural shift away from buying towards renting. But where are the most lucrative places to invest and let property?

In research undertaken by Barclays Bank it was found that the cities in which mortgage customers were investing in rental property more than any other were London, Birmingham and Bristol.

For Birmingham it is felt that the increase is primarily down to the HS2 train line that is planned and the opportunity it brings for Midlands commuters to get quickly to the capital. By investing now in advance of the 2017 construction date, landlords are cleverly getting themselves in a position to use HS2 to their advantage.

The most popular buy-to-let towns in the country included areas such as Slough in Greater London, as well as University spots such as Nottingham and Manchester. Plymouth too has felt the benefits of BTL, jumping massively in the standings of properties purchased for rental from 212^th to 16^th in the space of just 12 months. With a £90m investment heading in the direction of the South West and the economy growing as a result, there are many reasons for Plymouth property investors to feel confident in the market.

One of the most interesting findings was that three quarters of buy-to-let homeowners were using their property for future investment, to supplement their retirement or put children through higher education. Also, although the government recently vowed to cut the tax relief that BTL landlords receive, only one in ten landlords were looking to sell their properties. With more than 75% of BTL property owners managing more than a single property, it is obvious there is still money to be made in BTL investment. Bradford and Glasgow lead the way on those terms, with an average of eight properties per person.

The types of properties that are being bought for rental are changing too. Although the traditional ‘lived-in’ house is still popular, former council flats are beginning to be used in BTL more and more. A sturdy structure with good transport links and a growing economy are the key features that investors are looking for, with minimal renovation required on the inside. With areas such as Plymouth and Peterborough leading the way, it shows that being outside of the major cities isn’t a disadvantage either. Potential is important, and the buy-to-let scheme still has plenty of it.

At Orchard & Shipman we work closely with landlords to make sure that they are making the most out of their investments. When it comes to the property rental market it is important to know what your home is worth and where to find the ideal tenants. Whether you are looking to buy in a ‘hotspot’ area, or somewhere you feel has potential, contact Orchard and Shipman to find out exactly how much you could earn by working with us. Wherever you are considering buying we are always looking for landlord partners, call your local Orchard & Shipman property experts today.