The city of Manchester is the best place for people to buy property and let it out to tenants in the private rented sector according to analysis carried out by the website GoCompare. Manchester was rated as the best place to rent out a house with an average yield of 5.55 per cent. GoCompare researched the best areas for renting out a house and ranked them by average property price and rental yields, population under 35, number of properties available, number of letting/maintenance agencies, number of new housing developments, properties currently available for rent and rental price growth.
Rental Price Growth
If you are considering renting out your house, a key aspect to consider is how fast the local rental price is growing, so you can predict how much you will be able to raise the rent of your house in the next few years.
- Manchester takes the leading position on the ranking with a growth of 5.76 per cent.
- In second position with 5.3 per cent growth is Leicester.
- Cardiff is in third position with a growth of 5 per cent.
Average Yield
The average yield of a property determines the profit you will obtain for renting it out – and its rise or fall will establish how much of a return the owner gets.
- Manchester holds the top position again. The average yield there is 5.55 per cent, putting the city in a great position for property owners.
- Sunderland takes the second position for yield with 5.37 per cent – its best quality in terms of renting opportunities.
- Liverpool is a hotspot for owners, occupying the third place with an average yield of 5.05 per cent.
Average Property Price
In deciding between renting or buying a house, money is one of the main aspects to consider. The actual prices of properties will determinate if renting out is worth it:
- Stoke-on-Trent is in the least expensive area to buy property with an average property price of £106k, making the city the best place to buy a property and rent it afterwards. Landlords in this area have the best potential to make good profits.
- Oxford is one of the most expensive cities to buy a property with a price of £411k. Even though the city has one of the highest property prices, it might be good to consider renting out your property. The city is known for its university and the huge amount of students moving there looking for a place to leave while they start their university life is quite significant.
- London is in first position with the highest price rents, but also the highest purchase prices. The gentrification of areas and the facilities people have to move, plus the growing offer of jobs in the capital have made London the most expensive city to buy a house. Renting out is an option that needs to be considered really carefully.