In a recent study, Ascend Properties have outlined the cities in the UK that will be best for investors, based solely on rental demand. This study was done with the ‘Build to Rent’ sector in mind but the same logic would apply to your standard buy to let landlord.
The study looked at 15 different areas of the UK. In each city, the total number of renters was displayed as a percentage of the total number of dwellings. For some perspective, in the UK there are 4.7million people in the private rental sector which equates to 19.4% of the total dwellings.
The first point that the study makes is that there is a far greater demand for rental properties in major cities than in rural areas.
By the criteria used in the study, Manchester is the major city to offer the greatest potential to investors, with private rentals accounting for as much as 30.7% of the city’s property stock. Other notable cities which have more than 25% of dwellings occupied by renters are London, Southampton, Liverpool, and Bristol.
As property investors, we know that void periods and therefore being unable to service our mortgage debt is always one of the biggest concerns. Therefore choosing to purchase investments in areas with high rental demand is key to ensure we have many high-quality tenants to choose from all year round and our properties are not empty.