Hartlepool listed as hotspot for landlords to make better returns on their rentals
Hartlepool has been named as a hotspot for places where landlords can get better returns on their rental homes.
The North East of England and Scotland have been highlighted in the research, with Hartlepool placed joint ninth in the list, which also singled out Sunderland, County Durham, and Middlesbrough as locations where landlords made the greatest financial gain from the properties they bought.
The research was carried out by property website Zoopla, which compared average rents across the UK for two-bedroom properties with how much they would typically cost for landlords to buy.
Rental yields – the financial returns that landlords make on properties – are calculated by factoring in the annual rental income a landlord can achieve as well as how much they need to pay to buy a property.
Tom Parker, consumer spokesman at Zoopla, said relatively low house prices in parts of northern England and Scotland help to generate higher yields for investors.
He added: “Yields are of course one consideration for investors and, for those considering their first foray into the buy-to-let market, it is worth considering house price growth forecasts for an area, and whether rents are likely to rise over time.”
Zoopla released the research to mark the launch of new tips for buy-to-let investors on its website.
Here are the top 10 investor hotspots and the typical gross yield based on two-bedroom properties, according to Zoopla:
=1 Middlesbrough: 7.7%
=1 East Ayrshire: 7.7%
=1 North Ayrshire: 7.7%
=1 Inverclyde: 7.7%
5 Glasgow: 7.6%
6 Stirling: 7.5%
=7 Sunderland: 7.4%
=7 County Durham: 7.4%
=9 Nottingham: 7.3%