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Which Are the Best Places in the UK for Property Investments?

by | Sep 18, 2021 | Other Finance News

Even today, with demand for desirable properties at an all-time high, there is no such thing as a safe haven for landlords. Nevertheless, research conducted by Aviva suggests that as much as 10% of the adult population in the UK could be planning an investment property purchase over the next 12 months.

Anyone looking to get into the buy-to-let market will understandably have a robust and reliable ROI as their top priority. Accelerating house prices and tax hikes are making it more difficult than ever to turn a profit as a landlord in the UK.

Nevertheless, those who invest in the right kind of property in the right place have every opportunity to generate strong and reliable annual profits. According to the latest figures published by Coulters Property, there are some corners of the UK that are offering BTL investors average returns in the region of 3%, adding up to an annual profit of over £6,000 in some areas.

According to Coulters Property, these are currently the 10 best places in the UK to invest in a BTL property, on the basis of the potential annual profits generated:

Rank City Profits Per Year (£) % ROI 
1 Preston £5,256 2.98%
2 Coventry £6,033 2.74%
3 Glasgow £4,836 2.67%
4 Swansea £4,478 2.54%
5 Dundee £3,965 2.47%
6 Manchester £5,015 2.14%
7 Paisley £2,746 2.12%
8 Leeds £4,339 1.90%
9 York £5,405 1.85%
10 Stoke-on-Trent £2,481 1.73%

Preston came out as the surprise winner in the rankings, where average property prices are currently hovering around £176,378. With average monthly rents coming out at £981 per calendar month, this translates to a healthy £438 profit per month and £5,256 per year.

Cities in Scotland performed particularly well in the rankings, with the likes of Paisley, Dundee, and Glasgow all generating healthy returns on BTL investments.

Notable in its absence is London, which has traditionally been seen as the Holy Grail for investors looking to generate the biggest possible profits on their BTL investments. However, as property prices across London continue to climb to astronomic all-time highs, it is becoming increasingly difficult for landlords to generate viable profits, even where monthly rents are equally enormous.

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