Savvy Salford buy to let landlords are on track for a good year, with property investment in the area found to offer the highest rental yields in the UK.
The latest buy to let index from Kuflink found that Salford landlords made 7.08 per cent in the year until March 2017. Bolstered by the presence of the BBC and ITV in its Media City, the location is experiencing a boom as the two corporations bring jobs and prosperity to the area.
In following what seems to be a standard trend of the times, the highest yielding locations were concentrated in the North of England. Leeds and Manchester each performed well, with yields of 5.96 per cent and 5.79 per cent respectively. Coventry was also a high scorer, at 5.64 per cent.
Not all northern cities faired well, with investments in York achieving yields of just 3.17 per cent, identical to that of Cambridge. However, Chelmsford came bottom of the charts, offering investors yields of just 2.89 per cent.
In London, the strongest rental yields were to be found in Barking and Dagenham, at 5.30 per cent. Other high achievers in the capital were Newham, at 5.19 per cent, and the City of London at 4.58 per cent. The worst yields were located in Southwark and Greenwich, with the two areas offering just 3.82 per cent and 3.93 per cent respectively.
Chief executive at Kuflink, Tarlochan Garcha, said: ‘This index shows that savvy investors should look to the regions where strong rents and more affordable house prices make for fruitful investment opportunities. The Northern Powerhouse is leading the way, while London falls by the wayside, as rents fail to keep up with rocketing house prices. The stability of both house prices and rents is a positive sign for buy-to-let investors, proving the strength of the UK’s property market, which is able to withstand the uncertainty surrounding the UK’s exit from the EU. The following few months will be the true test of the market, as Article 50 negotiations get underway.’