According to the latest buy-to-let (BTL) index report by Lendinvest, Colchester, Stockport, Manchester, Birmingham and Canterbury are listed as the top 5 buy-to-let areas in the UK.

Colchester tops the chart. Stockport (#2), for the first time, overtakes its reginal leader Manchester (#3), which shows the increasing investment opportunities in the North West. The data also reveals that the buy-to-rent market in South Eastern cities is cooling off.  

(Source: Landinvest.com)

Buy-to-let market in the North

Increased interest in the North West of England has been led by investment into Manchester in the past few years. Whilst the overall property values across the south are slowing down, Manchester is currently leading the way in house price growth and will be continually developing. The strength of Manchester property market is driving the growth in neighbouring areas such as Stockport and Liverpool.

Recent months have seen increasing BTL capital gains and accelerating rental price growth in Stockport, allowing it to be a very feasible alternative for home buyers and renters alike. In addition to Stockport, Liverpool is also among the range of profitable buy-to-let hotspots with a growing number of diamond properties in the city.

Advice for investors

Brexit might be dominating headlines in the UK now, but the political uncertainty isn’t deterring investors who are taking a longer-term view. The latest HMRC data suggests investing in property to let continues to be a strong investment option. Moreover, the booming property development market and the flurry of regeneration that is happening in the North are showing greater investment potential than ever before. Investors can benefit from the price points which are much lower than the equivalent properties in the South as well as less money spent on stamp duty. In addition to focusing on rental yields, it is also advisable for investors to search for the best deals in the top buy-to-let area.

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