Stoke-on-Trent named 'real estate investment hotspot'
Stoke-on-Trent has been named as one of Britain's latest property hotspots, specifically for investors in the buy to let market, according to new figures.
Data collected on behalf of Home.co.uk for property crowdfunding platform Property Partner has revealed that Stoke-on-Trent in Staffordshire is the best location in the country in terms of investment returns and initial affordability of property.
According to the figures, real estate investors would only need a deposit of £29,397 in order to secure an average sized buy to let option in the region, with a loan-to-value of 75 per cent.
According to Abbey Iliff, lettings manager at Hanley-based estate agency Reeds Rains, the company's buy to let business is currently enjoying great success as investors from around the country and further afield seek to take advantage of the buoyant market.
"Buy-to-let has always been a strong business but we noticed an increase towards the end of last year and into 2017," she said. "Landlords can get good returns, especially if you rent by the room which pushes up the yield, but there is still good money if you let a house to a family. We have seen yields as high as ten or eleven per cent in some cases."
Ms Iliff added: "A lot of them use cash to put down a 25 per cent deposit, they can get a cheap buy-to-let mortgage and then they will buy three or four houses to spread the risk of one being empty."
After Stoke-on-Trent, the study ranked Oldham as the country's second best region for property investment, while Liverpool was placed in third, Leeds in fourth and Middlesborough made up the top five.
The Property Partner study tanked 100 of the UK's major towns and cities in total, taking into account the average income, average property price and average rent before ranking them to reveal the best investment areas.
According to the results of the study, this approach resulted in a clear North-South divide, with all of the top ten hotspots for property investment located in the north of the country. Meanwhile, all of the ten lowest ranked regions were found to be in the south.
Poole, for example, was found to be the most difficult for real estate investment in terms of locating a strong profit, providing an annual rental yield of just 1.94 per cent. However, this was closely followed by Central London and Sevenoaks.
Commenting on the study, the founder of Property Partner, Dan Gandesha, suggested that it highlighted how many lower demand areas can offer the best investment opportunities for those in the know.
"We have always been at pains to point out to investors that prime locations such as Kensington and Chelsea can offer some of the lowest yields available, because prices have raced ahead while rents have failed to keep pace," he added. "It just goes to show, you shouldn’t always follow the crowd and the right investment could be on your doorstep where there is far less overall demand."