10 Rental Hotspots in 2020

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Where are the rental hotspots for landlords in 2020, you ask? That’s what we’re here to tell you with our list of the best places in the UK to invest in a buy-to-let property. Read on, and discover the areas where your money goes furthest. 

The beginning of the year often brings with it new optimism, and landlords – both first time and seasoned pros – are looking across the UK to see where they can get the best bang for their buck. The North is leading the way, but there are still some plays from the Midlands and the South. 

Rental hotspots in a snapshot 

  • Sheffield, 5.8% yield
  • Liverpool, 5.8% yield
  • Nottingham, 5.4% yield
  • Leicester, 5.1% yield
  • Leeds, 5% yield
  • Birmingham, 4.9% yield
  • Manchester, 4.7% yield
  • Cardiff, 4.2% yield
  • Oxford, 4.2%
  • London, 3.75%

1) Sheffield

A city steeped in industry, Sheffield offers the best yields at 5.87%. There are a large number of independent businesses as well as students and young professionals looking at Sheffield as a place to live and work. The result means landlords are likely to see plenty of demand for rental homes in “The Steel City”. 

Average house price:  £142k

Average yields: 5.87%

2) Liverpool

Liverpool has become a significant player in the buy-to-let scene with yields of 5.82%. From the Georgian Quarter to Chinatown and Ropewalks to Fairfield, there are many investment areas in Merseyside. Liverpool also has the fastest-growing regional economy outside of London. 

Average house price:  £134k

Average yields: 5.82%

3) Nottingham

Nottingham is the third most attractive city to purchase an investment property in 2020, with yields of 5.44%. A bustling city centre and scenic village provide a good combination of hustle and bustle and quiet countryside living. 

Average house price:  £160k

Average yields: 5.44%

4) Leicester

Leicester City Football Club beating all the odds to win the Premier League in 2016 might have put the East Midlands city on the map, but a strong economy and regeneration have also helped to cement its position as a thriving buy-to-let hotspot. Expect yields of 5.15% for rental properties in Leicester. 

Average house price:  £166k

Average yields: 5.16%

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5) Leeds

Leeds has cemented itself as a buy-to-let favourite, and the large city has plenty of options for investment. A high intake of students and professionals, who are always on the lookout for property in Leeds, means landlords won’t have any problems finding tenants for their properties.

Average house price:  £169k

Average yields: 5.07%

6) Birmingham

Sutton Coldfield, Edgbaston, Moseley, Kings Heath and Bournville make up Birmingham, the central hub of the UK. Prices in the city have grown by 19.4% in the last six years, making it a great place for landlords to invest in property. Yields currently sit at 4.92%. 

Average house price:  £190k

Average yields: 4.92%

7) Manchester

The northern powerhouse of Manchester is proving to be a popular spot for buy-to-let investments, with landlords enjoying impressive yields of 4.77%. The city has undergone extensive regeneration over the years and is now a cultural and entertainment hotbed with in-demand areas like the Northern Quarter and Castleford in the city centre and Didsbury in the suburbs. 

Average house price: £229k

Average yields: 4.77%

8) Cardiff

The capital of Wales has proven itself to be a popular city with plenty of nature, culture and history. Cyncoed is one of the most sought-after areas in Cardiff, while Cardiff Bay has is particularly popular with renters thanks to its easy links into the city centre. Expect yields of 4.89% in Cardiff. 

Average house price:  £193k

Average yields: 4.25%

9) Oxford

Oxford might be a small city in comparison to the other entries on this list, but it has a huge range of property and plenty of demand from professionals and students alike. The city of Dreaming Spires offers an easy commute into London and is known for its striking architecture that contains one of the best-preserved groups of medieval buildings in the country. 

Average house price:  £348k

Average yields: 4.25%

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10) London

Despite rising prices in the capital, London remains on the rental hotspot list for 2020 with yields of 4.85%. The UK’s largest economy, lots of student demand and its billing as one of the most important cities in the world still provides landlords with  food for thought when looking for an investment opportunity. 

Average house price:  £717k

Average yields: 3.75%

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