The decision to become a landlord involves many factors \u2013 but how many landlords consider exactly where the best areas are in order to have the best chance of succeeding?<\/p>\n
With renting becoming increasingly vogue, this is good news for landlords all over the country. You may want to take in certain geographical factors, however, into your decision-making.<\/p>\n
You may have pinpointed somewhere near to a university, perhaps, or based the decision on your own tastes of where you want to live \u2013 however, before sorting out your buy-to-let mortgage and landlord insurance, location could be an important thing for you to consider.<\/p>\n
According to a recent postcode survey, picking a location that people may not necessarily have chosen to live in if they didn\u2019t have to, can lead to higher profits for landlords. For instance, many people live in London due to work rather than choice.<\/p>\n
The survey listed Blackpool as having the best opportunity for landlords \u2013 with low property values and high rent the average gross annual yield is 5.35%. Other top contenders include: Wigan, Romford, Uxbridge, Cleveland and Luton.<\/p>\n
The study concluded that other factors influencing high gross yield were areas with low housing costs, a changing population, and places with large ethnic populations, where demand to rent is high.<\/p>\n
Another influencing factor is the balance between demand and supply. A similar survey found that London has the biggest demand for rental properties in the UK, followed by Luton, Cambridge, Milton Keynes and Portsmouth. In these areas, rooms up for rent are snapped up within a matter of hours after being advertised, according to the study.<\/p>\n
In areas where supply is low and demand is high, this is good news for rental rates, with potential tenants being more lenient on price. Especially in London \u2013 soaring house prices means that demand for rental properties will probably always be high.<\/p>\n
One study has investigated which type of tenant provides the highest earnings, which will also be affected by which area you decide on. The study says that students provide the highest yield, followed by young singles and the retired. Therefore, depending on the type of tenants you\u2019re looking for \u2013 choosing a university town, a well-off area or an area of retirement could also affect your profits.<\/p>\n
Deciding to become a landlord is a complex decision and isn\u2019t the fastest or easiest route to money. Despite the risk, however, it can be both rewarding and profitable. Deciding where to rent property may impact your long term success \u2013 so think about what type of tenants you want to attract and select somewhere where demand sits higher than supply. Lastly, ensure you know your way around a washing machine and you\u2019ll have guaranteed plain-sailing.<\/p>\n","protected":false},"excerpt":{"rendered":"
The decision to become a landlord involves many factors \u2013 but how many landlords consider exactly where the best areas are in order to have the best chance of succeeding? With renting becoming increasingly vogue, this is good news for landlords all over the country. You may want to take in certain geographical factors, however, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[545,10,30],"tags":[],"class_list":["post-4086","post","type-post","status-publish","format-standard","hentry","category-insurance","category-landlords","category-housing-market"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4086"}],"version-history":[{"count":8,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4086\/revisions"}],"predecessor-version":[{"id":5963,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4086\/revisions\/5963"}],"wp:attachment":[{"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4086"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.hip-consultant.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}