The study of the latest buy to let index from peer to peer property lender Kuflink suggests that UK property investment remains solid despite Brexit, with regions with strong rents and more affordable prices offering the most attractive yields for landlords.
The analysis of average UK house prices and median rents in 50 major towns and cities show that since January 2017, average rental yields have remained strong in 34 out of the 50 locations - despite a dip in rents across the UK.
The data highlights that while there has been a slowing down in house price growth, overall, prices remain fundamentally strong, with Swansea enjoying the biggest increase in average property prices at £5,593, followed by Milton Keynes with an increase of £4,689.
The Northern Powerhouse cities and towns are proving to be the current best for investment in BTL property with yields of:
- 08% in Salford;
- 96% in Leeds;
- 79% in Manchester.
At the other end of the scale, Chelmsford in Essex provides the weakest returns of just 2.89% with Cambridge, York, Chester, Doncaster, Derby, Wigan, Wolverhampton, London and Carlisle also at the bottom with average yields of 3.17% - 3.47%.
A spokesperson from Kuflink said that the research suggests that “investors should look to the regions where strong rents and more affordable house prices make for fruitful investment opportunities”.