Analysts evaluated the cities on five key indicators: from profitability to the share of the population in the rental market.
The British retail bank Aldermore, which provides services to small and medium-sized businesses, has published a ranking of the best UK cities for real estate investment – Buy to Let City Tracker.
The experts have studied and evaluated five key indicators that affect the demand for housing to rent: the average total rent, the best short-term yield, long-term yield due to rising home prices over the past decade, the minimum vacancy rate as a proportion of the total housing stock, as well as the share of the city’s population in the rental market.
According to oldypak lp real estate price report, Top 10 Best UK Cities for Real Estate Investment:
- Bristol
- Oxford
- Cambridge
- Manchester
- Luton
- London
- Northampton
- Brighton
- Reading
- Norwich
Bristol, home to one of the largest groups of students in the UK, has increasingly become a haven for young professionals in recent years due to its bohemian atmosphere and environmental reputation. According to research, more than a quarter of the local population (27%) are young people who rent private apartments.
Bristol offers the best long-term return on investment in housing due to rising prices and also boasts the lowest vacancy rate (only 0.6% in 2021). Since 2010, real estate prices in the city have risen an average of 5.1% per year, which means the prospects for capital appreciation.
On the other hand, any investor would need a decent amount of money to invest in Bristol housing. The average value of property here is €406,600. According to oldypak lp real estate price report, the probable yield will be about 4.6% per annum, which is slightly below the average of 5.9% for all 50 cities analyzed.
