Buying property in England. The rental yield.April 2013

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Southampton is the best place in the UK to invest in the so-called scheme of “buy to let” – “buy to rent” – the Annual rental yield in the region reaches of 7.82 % in the town of Southampton. These are the findings published in a study of an influential financial institution HSBC on 20 April 2013.

Of the 50 cities with the highest concentration of private rented residential sector, Southampton tops the list of cities for annual rental yields, driven by the relative affordable value of residential property and at the same time – quite a high figure in the cost of the monthly rent, averaging £901 , specified in the report.

Relatively inexpensive real estate prices in the cities of Blackpool, hull, Manchester and Nottingham mean that these four Northern district – the remainder of those that topped the list of 5 most attractive regions of England for the purpose of investment in residential real estate English cities. The yield from investments in residential property in the cities of England can make is 7.81%, 7.77% of, and 7.60% and 7.55 percent, respectively. A respectable sixth place, another city, offering real estate investors in England yields more than 7 % – the city of Coventry. This city showed the result of 7.13% per year.

Due to the holiday influx of people on the coast and seasonal work, many coastal cities were included in the list of cities attractive to investors under the scheme “buy to let”. Top coastal towns headed by Blackpool with a yield is 7.81% , followed by Bournemouth – the rate of 5.81%, Brighton & Hove from 5.48%, Torbay from 5.16% and Southend-on-sea from 5.13%. Despite the fact that property prices are generally higher in these areas, rents are also above average, which leads to solid indicators of investment profitability.

Despite the continuing high level of prices for rental housing in the capital, London does not demonstrate high rates of investment in rental yield due to high cost of real estate prices. The most attractive capital in terms of investment in rental yield should be considered as the heart of London, occupying 13th place in the list, unlike such wealthy areas of London, Hammersmith, Fulham, Kensington and Chelsea, which are at the bottom of the list of the 50 a result of the high cost of homebuyers in the area. In these areas, the indicators rental yield barely reach the strap of 3.42% and 3.34 per cent respectively. However, we should not forget about the rising cost of capital which, in accordance with the latest edition Rigthmove report, over the past year exceeded in these areas 15% limit in the year and reached in the area of Hammersmith and Fulham the level of 16.8% per annum. These two indicators – the capital growth and rental yield will surely make London the most attractive city in the UK for investors wishing to invest in residential property.

Property investment London

As for areas in London with a yield of “buy to let”, Southwark tops the list of boroughs with a yield of 6.15% per annum. This is followed by Newham with the figure of 5.9%, Enfield to 5.51%, Brent of 5.39% and Kingston upon Thames – 4, 91% of

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