Month: July 2020

As the UK’s second-largest city, Birmingham offers a wealth of opportunities for landlords. Canal-side city-centre flats, family homes, suburban properties and student accommodation all represent great property investment opportunities. If you’re looking for a buy to let property in Birmingham, read on for The Landlord Link’s guide to buying rental property in buzzing Brum.

Why invest in Birmingham buy to let property?

Growing investment in Birmingham and fantastic transport links to virtually everywhere else in the UK have made it an attractive location for businesses, students and regeneration projects. Once HS2 arrives in 2031, you’ll be able to get to London in just 49 minutes. While Birmingham may not appear on the list of the best places for rental yields in 2020, the city is most definitely on the up.

Investment projects in 2020 include the Eastside Locks regeneration scheme which is modelled on an area in Barcelona. A £450 million investment makes it one of the most significant city centre regeneration schemes in Europe, with apartments, a hotel, shops, bars and restaurants all rising from a formerly neglected part of the city.

Near the Bullring, a 42-acre site south of the city centre will be transformed into an area that will bring food, culture and community together, with a foodie hub attracting people into the area. The centrepiece square of the Smithfield project aims to rival the best that Europe has to offer, with a museum, cultural centres and family attractions like an ice rink.

Digital and media projects are also seeing significant investment. Birmingham and the West Midlands are the UK’s first testbed for widespread 5G mobile communications. The director of Peaky Blinders has plans in the works to create a £500 million media village to capitalise on Birmingham’s growing reputation as a filming location.

All these plans are likely to increase demand for rental property in Birmingham and the West Midlands – so which areas in Birmingham should you look at to add properties to your rental portfolio?

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Best areas for buy to let in Birmingham 2020

At the Landlord Link we’ve done our research into the Birmingham property market. Here are the areas we think landlords should consider for buy to let property in Birmingham.

Birmingham city centre

Like many UK cities, Birmingham has seen huge growth in city centre living. Apartments in converted warehouses and sleek new builds attract professional singles and couples looking to take advantage of Birmingham city centre’s food scene, nightlife, shopping and leisure facilities.

As always, brand new properties have a price premium, making decent rental yields more challenging. Some property investors also believe that there’s an over-supply of apartments to rent in Birmingham city centre, and that family homes further out may be a better buy.

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Digbeth and Eastside

These two areas to the east of Birmingham city centre have already seen a lot of regeneration and more is planned.

Digbeth has been hailed by the Sunday Times as one of the coolest neighbourhoods in Britain (get used to seeing that in off-plan development listings!). With Curzon Street station due to become Birmingham’s HS2 hub, the area has all the amenities that city-dwellers could wish for.

Properties for sale in Digbeth and Eastside are mainly apartments. Some are in modern blocks with amenities like communal roof gardens, while others are in converted industrial buildings, reflecting the history of the area. Prices are well above the Birmingham average at around £200,000+ for a two bedroom flat. That said, rental yields of 6% are possible, and there’s still potential for prices to rise in this most fashionable of Birmingham areas.

Aston and Nechells

Just north of Birmingham city centre you’ll find Aston and Nechells. Both are inner-city areas with large numbers of HMOs and shared accommodation. Aston is popular with students at nearby Aston University.

Crime is higher than average in these two areas but they can be a cheap place to invest for experienced landlords; current yields are slightly higher in Nechells at up to 9% vs 5% in Aston, thanks to lower asking prices.

Edgbaston and Selly Oak

Either side of the University of Birmingham campus you’ll find Edgbaston (to the north) and Selly Oak (to the south). Unsurprisingly, both areas are very popular with students but you’ll also find family homes here.

Leafy Edgbaston is known for its large houses, botanical gardens and the Edgbaston cricket stadium. In recent years, Edgbaston has seen a number of purpose-built student accommodation blocks built, particularly around the large reservoir. Yields in Edgbaston will vary a lot depending on the type of property but average around 4%. That’s not to say that it’s not worth looking at Edgbaston for your next rental property; good student properties could be much higher.

Selly Oak is significantly cheaper than Edgbaston and also offers higher rental yields at around 5%. Check the street and neighbours carefully as some streets are student hubs while others are family areas. Selly Oak has also seen lots of purpose-built student accommodation blocks coming on to the market recently, with more blocks likely to come. If you’re considering a student house share or HMO in Selly Oak, be aware that your competition for tenants is likely to be of a high standard.

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Western Birmingham: Quinton, Smethwick, Oldbury

The suburbs on the outskirts of Birmingham straddling the M5 can be a solid investment. While Oldbury, Smethwick and Quinton may not be as fashionable as Moseley or Digbeth, investors report good returns.

Quinton (B32) has one of the oldest populations in Birmingham and the lowest crime. Housing in Quinton is mostly 1930s and 1940s semi-detached family homes mixed with some bungalows and more modern developments. Yields are around 4%.

Smethwick is strictly speaking part of the West Midlands rather than Birmingham, but it’s only 4 miles from Birmingham city centre and has some of the highest yields with a Birmingham postcode at 5.4% for B66. Smethwick is a town in its own right and tenants will appreciate the range of facilities along with transport links to the city centre.

Oldbury’s B69 postcode sits either side of the M5 and again is West Midlands rather than Birmingham-proper. Oldbury is heavily built up with a mixture of social housing, private housing and industrial areas. Landlords who take the time to understand the market for buy to let properties in Oldbury could be rewarded with yields of around 5%.

HMOs and Article 4 in Birmingham

From 8 June 2020, Birmingham City Council planning department introduced an Article 4 Direction across the entire city, meaning that any new HMOs need planning permission. With Birmingham council showing their stance on HMOs in such a firm way, getting planning permission to convert a large property into an HMO is likely to be difficult to come by.

If you’re still keen to invest in HMOs in Birmingham, buying an existing Birmingham HMO could be a better way to go. To protect your investment, make sure you get proof that the property has been an HMO for 10 years or as a minimum that it has been operating as an HMO since before the Article 4 date.

Is Birmingham a good place for landlords to invest in property?

For savvy investors, Birmingham can be a great place to invest in buy to let property. One of the best reasons for landlords to purchase buy to let property in Birmingham is the level of demand and the variety of property available. We’ve already seen strong investment in jobs and infrastructure in Birmingham, and the city population of 1.1 million is forecast to grow by nearly 20% by 2039. That’s an extra 200,000 people who’ll need somewhere to live.

Birmingham property prices are surprisingly low with the average property selling for £163,000. That’s less than either Manchester or Leeds. It’s also substantially less than London, and the easy transport links back to the capital, coupled with good job opportunities and excellent schools have led Birmingham particularly attractive to Londoners looking for a better quality of life.

Which area will you choose for your Birmingham buy to let investment?

See rental property for sale in Birmingham and the West Midlands on The Landlord Link >

If you’re looking for great property opportunities in the North West, buzzing Liverpool is a top choice for buy to let. A varied range of tenants, property types, and some of the best rental yields to be found anywhere in the UK mean investors’ eyes have been turning towards the Mersey. Read on for The Landlord Link’s guide to buy to let property in Liverpool.

Why choose Liverpool for buy to let properties

After some lean years in the 1970s and 1980s, massive regeneration in the last 20 years has seen Liverpool transformed. The riverside area is a real jewel, while the Albert Dock, one of the first Liverpool regeneration projects is now home to the Tate Liverpool art gallery. The city is currently attracting over £1 billion each year in investment; current schemes include the Knowledge Quarter, which aims to position Liverpool as a global city for innovation.

Employers in Liverpool come from a range of sectors, from the Jaguar Land Rover factory to the world’s second-largest wind farm. The life sciences industry is a key focus for Liverpool, and is worth in excess of £1.7 billion a year. The historic port is still thriving and is home to four of the world’s top six shipping lines.

Housing in Liverpool

As a large, growing city, there is plenty of choice in Liverpool’s housing stock. The most popular areas with the largest yields are mainly made up of terraced housing. Some of the more run-down terraces have been demolished, while other areas have been refurbished – Liverpool council famously sold terraced houses in L7’s Webster Triangle area for £1 to owner-occupiers who agreed not to sell the houses for five years.

In the city centre, apartments have been created inside old buildings as well as in purpose-built blocks. The Albert Dock was one of the first city-centre developments of its type, and has now been joined by hundreds more sleek waterside apartments, many with stunning views of the Mersey.

In common with many other university cities, Liverpool has a number of new student housing blocks located in L7 and L1, close to the University of Liverpool, Liverpool John Moores University and the School of Tropical Medicine.

Families looking for good schools and a villagey atmosphere gravitate to Aigburth and Allerton, while John Lennon’s childhood neighbourhood Woolton is still a prestigious and popular choice.

Best areas for buy to let in Liverpool

Landlords searching for good rental yields and affordable purchase prices will be spoilt for choice in Liverpool. No fewer than seven Liverpool postcodes appeared in Totally Money’s survey of the best areas to buy a buy to let property in 2020, so finding the right buy to let property in Liverpool to add to your portfolio should be a relatively simple task.

See properties for sale by landlords in Liverpool

L7: Edge Hill, Fairfield, Kensington

The L7 postcode area in Liverpool covers part of the city centre, along with the Edge Hill, Fairfield and Kensington areas. Most properties in L7 are terraced houses and the average price for this type of property is around £119,000.

Regeneration has improved the area (some parts could be described as up-and-coming) and it’s conveniently close to the city centre. The western edge of the area borders the Knowledge Quarter, University of Liverpool and the Royal Liverpool University Hospital (which will open a £429 million, state of the art new building in 2022).

L7 isn’t just the best postcode area for rental yields in Liverpool, it’s been crowned as the best area for buy to let in the UK for 2020. Yields in the area can be as high as 10.30%.

Sell your property in L7 for free on the Landlord Link

L1: Liverpool city centre

The L1 postcode area covers most of the city centre, from the Anglican cathedral in the south up to Liverpool Lime Street station in the north. Liverpool has a booming city centre living scene, and most properties in the area for sale are apartments in either converted period buildings or new builds. Popular parts of L1 include the Baltic Triangle, which is very close to the waterfront, and the Ropewalks area. Both locations have appeared on lists of the coolest neighbourhoods in the UK and are packed with shops, bars and cafes.

It’ll come as no surprise that properties in L1 tend to attract young professionals looking to live and work in Liverpool city centre, making use of all the amenities on their doorstep. There is also a sizeable student population and a number of modern student accommodation blocks have sprung up on the northern edge of L1 in recent years.

Rental yields in L1 are among the best for buy to let in Liverpool; choose your property well and you could see up to a 10% return on your investment.

L11: Norris Green, Croxteth and Gillmoss

The L11 postcode covers a large area towards the edge of Liverpool and is bounded by the A580 East Lancashire Road and the M57. The area is made up of low-rise, post-war housing (including large amounts of social housing) but with good access to green spaces and community facilities like schools, health centres and local shops.

Rental yields for landlords in L11 aren’t quite as stellar as in L7 or L1, but are still very attractive at 8.67%.

L6: Kensington, Anfield, Fairfield, Everton and Tuebrook

Liverpool L6 is a very varied postcode with a real mix of housing; terraced houses, grand Victorian townhouses and 300-year-old Georgian mansions next to 1940s semis. On the eastern edge of L6 you’ll find Newsham Park, a large green space with a cricket club, lakes, play areas and a skate park.

If you choose one of the L6 areas for your buy to let in Liverpool, you can expect a yield in the region of 8.4%.

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L2: Liverpool city centre

The L2 postcode area covers the northern part of Liverpool city centre and contains some of Liverpool’s prime business real estate, mixed with luxurious apartments (many of them serviced) and hotels. It also covers the Cavern Club, Moorfields station and Liverpool Town Hall.

Rents in L2 are higher than in L1 (although that could be due to the lack of student accommodation in this area), but yields are lower at a still-solid 7.56%.

L3: City centre waterfront

L3 covers almost the entire city centre waterfront, from the Canada Dock oil port in the north, all the way down past the iconic Three Graces to the former garden festival site (now Festival Gardens) in the south. The area is home to the Albert Dock, Liverpool’s original regeneration project and model for inner-city living. It’s now been joined by Liverpool’s arena and exhibition centre, the Liverpool branch of the Tate art gallery, the Museum of Liverpool, and thousands of luxe apartments in a mixture of old warehouses and ultra-modern blocks.

Apartments with waterfront views command some of the highest property prices in Liverpool city centre, but rental yields for landlords of 7.4% are still achievable – and these covetable waterfront properties are in high demand by tenants.

L4: Anfield, Kirkdale, Walton

In the north of the city, the L4 postcode area contains the stadiums for both Liverpool and Everton football clubs. It also boasts two large parks. The Canada Dock railway line runs through the area – at the moment it’s only a goods line serving Liverpool’s docks but there have been repeated calls to open a station to serve Liverpool FC’s Anfield ground. If the plans come to fruition, a station could be good news for property investors and landlords in this part of Liverpool.

Rental yields for Liverpool landlords with properties in L4 are solid at 7.13%. Property types in L4 include larger Victorian villas, some of which have been turned into HMOs of 5-7 bedrooms, semi-detached homes, bay-fronted terraces and some pockets of modern estates and apartments.

HMOs in Liverpool

There are lots of HMOs in Liverpool, and in recent years there’s been an issue with oversupply, leading to Liverpool City council to put Article 4 directions on the number of HMOs in certain areas, including 14 streets in the Dales area of L15. Areas with these restrictions require landlords to apply for planning permission to create an HMO, rather than using permitted development rights. It’s worth noting that if you’re looking for rental property to buy in the wider Merseyside region you should check the policies of the local council, as Sefton, Knowsley, Halton and Wirral all have different policy positions on HMOs.

Landlords in Liverpool report that the oversupply of HMO rooms has increased tenants’ expectations from their home. HMO landlords in Liverpool should aim for fewer, larger rooms in their properties, with high quality furnishings, en-suites wherever possible and high-speed broadband. Ideally, HMOs should be close to bus routes either to Liverpool’s universities or to the city centre for maximum convenience, and have amenities like local shops nearby.

Buy to let properties for sale in Liverpool on The Landlord Link

On The Landlord Link, Liverpool landlords can list rental properties and HMOs for sale, absolutely free. Take a look at the buy to let properties for sale in Liverpool available now or sell your property today.

Data from Totally Money’s Buy to let Yield Map.

For landlords looking for the best places to invest in buy to let property, choosing the right area is key. In a fast-moving property market you need to be armed with the latest facts to stay a step ahead. Research shows that these are the best areas in the UK for buy to let in 2020 – which one will you choose for your next investment?

With lockdown restrictions gradually easing, you might be thinking of expanding your buy to let portfolio. It could be a great time to pick up a new buy to let property; major lenders in the buy to let mortgage market like Barclays and Skipton have cut rates, while the Chancellor Rishi Sunak’s stamp duty holiday makes buying a new rental property more affordable than it’s been in quite a while.

As all experienced landlords know, the location of your new rental property is key, and some UK towns and cities perform significantly better for landlords compared to the UK average. With competition for the best buy to let properties increasing in many areas, it’s key to be in the know about where to buy for the best return on your investment.

At The Landlord Link we’ve crunched the numbers from two of the biggest rental property surveys to find the best buy to let areas in the UK in 2020.

The top 15 UK towns and cities for buy to let investment

	UK area	Top postcode	Average property price	Yield
1	Liverpool	L7	£95,000	10.30%
2	Bradford	BD1	£57,000	10.00%
3	Falkirk	FK3	£62,450	9.51%
4	Sunderland	SR1	£61,000	9.40%
5	Middlesbrough	TS1	£56,000	8.80%
6	Glasgow	G52	£82,000	8.71%
7	Kilmarnock	KA1	£64,995	8.31%
8	Leicester	LE1	£100,00	8.00%
9	Leeds	LS2	£125,000	7.92%
10	Sheffield	S1	£115,000	7.83%
11	Newcastle-upon-Tyne	NE6	£128,000	7.80%
12	Pontypridd	CF37	£125,000	7.70%
13	Cardiff	CF43	£67,000	7.61%
14	Manchester	M14	£177,000	7.60%
15	Edinburgh	EH8	£215,000	7.60%

Best areas in England for rental properties

Liverpool is still the best place in the UK overall to look for buy to let properties in 2020, with a range of postcodes across Liverpool seeing great yields. Landlords could see returns of up to 10.30% in the L7 postcode area which covers popular buy to let areas like Fairfield, Kensington and Edge Hill, while the city centre L1 postcode isn’t far behind at 10.00%.

Read our Liverpool buy to let guide >

Liverpool is the best area in the UK in 2020 for buy to let investors

Bradford is another emerging landlord hotspot with potential yields of 10.00% in the city centre. Low house prices (especially in comparison with nearby Leeds), regeneration projects and a university are all great reasons to choose rental property in Bradford. Look for properties in the BD1 area for the best returns.

The North East of England is still showing rich pickings for landlords looking for affordable, easy to rent property with good yields. The student hubs of Sunderland and Middlesbrough appear at numbers 4 and 5 in the rankings of the best places in the UK for buy to let, while the NE6 area in the west end of Newcastle-upon-Tyne appears at number 11. With yields of over 9% in the top areas of the North East, it’s no surprise that savvy investors are looking towards the Tyne and the Tees.

Best areas in Scotland for buy to let

Scotland continues to be a very strong option for landlords looking to pick up additional properties. The Scottish government have chosen to partly mirror the stamp duty holiday in England with a cut to the Scottish Land and Buildings Transaction Tax (LBTT) on property priced at under £250,000 until 31 March 2021.

Thriving Glasgow is a great option for landlords looking to expand their portfolio of properties.

While the Grangemouth area of Falkirk has the best rental yields in Scotland at up to 9.51%, many landlords will want to look at Glasgow, where a diverse range of postcodes across the city can achieve returns in the range of 7.1% to 8.71%.

Elsewhere in Scotland, Kilmarnock is increasingly popular with renters thanks to good commuter links to Glasgow. Landlords investing in the town’s KA1 postcode can expect yields of up to 8.31% with an initial outlay in the region of £65,000 for a typical rental property.

The EH8 postcode in Edinburgh looks an attractive prospect at 7.60%, although the initial investment is significantly higher than any other area on the list at an average £215,000 purchase price. If that’s too steep for you, consider Paisley as a location for your next portfolio property – yields in the region of 7.45% in the PA3 postcode just north of the town centre make it a reliable performer.

Looking to the north of Scotland, buying a rental property in the granite city Aberdeen could be a rock-solid investment. Aberdeen’s energetic economy continues to attract renters, and the city looks well-placed to ride out the economic shocks that 2020 has thrown at other areas in the UK. While landlords in Aberdeen may not be able to achieve the rental yields in double figures that they might see in Liverpool, the average yield in AB11 is still a very respectable 7.10%.

Best areas in Wales for landlords

It’ll come as no surprise to experienced landlords that the best areas for buy to rent in Wales are concentrated in the lucrative South East Wales area, and particularly around Cardiff. This part of Wales has been popular with landlords for several years now since the abolition of tolls on the Severn Bridge, giving residents easy access to both the Welsh capital and Bristol across the border. The effect is now spreading out from Cardiff and up into the Valleys.

Towns around Cardiff have been popular areas for buy to let investment thanks to great transport links.

The top postcode in Wales for landlords in 2020 is Pontypridd’s CF37. Cardiff is just 20 minutes away by train and this popular Valleys town has received millions in regeneration funding. Landlords who want to take advantage of rental demand in the area can expect up to a 7.70% return for an initial investment of around £125,000. Further north, the Ferndale area doesn’t have a train service but can offer tempting yields of around 7.61% and house prices here are far lower.

Are you considering one of these top areas for buy to let in 2020?

Data from Totally Money and Mojo Mortgages