best buy to let areas in the UK 2024

Best Areas in the UK for Buy-to-Let Investment for 2024

Table of Contents

Key Takeaway:

  • Understand why the top 3 areas in the UK for buy-to-let investment offer great benefits and opportunities for property investors.
  • Take assistance from the best property sourcing agency in the UK to finalise your investment in BTL property. 

Do you want to become a successful property investor in the UK?

Are you figuring out how to increase your ROI in the property investment space?

Well, buy-to-let investment is one of the best choices to get started.

It is one of the most popular investment strategies adopted in the UK, especially for individuals who want to keep their investments safe, secure, and profitable.

Here’s an interesting fact that supports the above statement: £8.5 billion worth of buy-to-let (BTL) properties were purchased by UK landlords in Q1 2022.

But to ensure you make the most of your investment, you must filter out the best areas in the UK for buy-to-let investment.

Let’s find those out.

Top 3 Areas in the UK for Buy-to-Let Investments

We have filtered the three top areas in the UK for buy-to-let investment for you, ranging from affluent city suburbs to student enclaves and regeneration hot spots.

1. Birmingham

In the coming decade, high-speed rail will cut the journey between Birmingham and London to 49 minutes. So, with robust connectivity and convenient access to all the amenities, Birmingham is an ideal place to bet your money on BTL property.

But is there any specific area inside Birmingham suitable for your investment? The answer is yes. 

You can invest in Digbeth, which is half a mile south-east and within walking distance of the HS2 station. Over the past years, Digbeth has blossomed with new homes, shops, cafes and bars.

Not just that, the future of the city also looks bright: 

  • A film studio, ‘Digbeth Loc Studios’ for Peaky Blinders, opened in 2023. 
  • Street food company Boxpark will open their outlet in 2025. 
  • BBC Birmingham headquarters will open soon this year.

Property prices may rise because of these new attractions, so investing in a BTL property right now is ideal and recommended. Currently, the prices are lower, especially in the urban village north-west of the city centre.

You can buy a two-bedroom flat in Digbeth for £250,000 to £300,000 and receive rent at around £1,200 to £1,400 per month, which highlights a 5–6% rental yield.

2. Southampton

Named as the #1 buy-to-let hotspot in England and Wales by HSBC, Southampton has an average rental yield of an impressive 7.82%.

Out of 50 towns and cities with the highest concentration of rental stock, Southampton is at the top of the bank’s league table with an average property price of £138,000 and average rents of £900pcm.

We recommend investing in one-bedroom or two-bedroom flats in the city centre, ideally with outside space. The property in this location is close to the station and university campuses, which can increase your chances of getting a good ROI from your BTL property investment.

The prices of decent property in the hotspot of Southampton are:

  • £175,000 to £250,000 for a one-bedroom flat
  • £240,000 to £350,000 for a two-bedroom flat

These properties can give a rental yield of £900pcm and £1,500pcm, respectively.

The city’s overall real estate market is witnessing a rise in interest from recently employed graduates, couples and singles, key worker staff, and young professionals.

Although the house prices in Southampton slipped 1.5% recently, it will bounce back with projects like Packaged Living’s £200m regeneration plans for a site near the station and Southampton Airport’s recently completed runway extension.

3. Nottingham

Three factors make Nottingham a preferable place for you to invest in a BTL property:

  1. A student population of more than 65,000
  2. Growing economy
  3. Rising house prices

A property near the University of Nottingham is the hotspot for BTL property investment, with an average property price of £195,705 and an average asking rent of £1,354pcm.

You can expect a yield above 8%, which can help you achieve your financial goals and result in a successful BTL property investment.

But with projects like the redevelopment of the Broadmarsh shopping centre and surrounding area, you cannot ignore the significance of properties in the city centre.

One of the best locations for buy-to-let property investment in Nottingham is close to the city centre. The average prices of £174,064 and average rent of £1,204 yields also come in at over 8pc.

These three areas in the UK for buy-to-let investment provide an excellent opportunity for you to leverage the upcoming wave of property and rental price increases.

But going through multiple properties across these cities can be overwhelming. So, you can rely on a professional property sourcing company like Pluxa Property to handle everything related to buy-to-let property investment.

How Can Pluxa Property Help You Finalize the Best BTL Property?

We, at Pluxa Property, are a professional property investment consultancy that specialises in various areas across the UK, including Birmingham, Coventry, Dudley, Nottingham, Derby, Manchester, York, London, Leeds, Bournemouth, Weymouth, Torbay, Cardiff and Oldbury. 

We offer services tailored to your needs, whether you are a first-time buyer or an experienced investor looking to expand your portfolio.

Go through our range of properties available in the city of your preference to finalise one for your BTL property investment strategy.

FAQs

1. Which is the best place to buy BTL property in the UK?

The best regions for rental yields are predominantly in the North. Here are the rental yields that you can get after investing in particular regions in the UK:

  • North East: Leads with the highest average yield of 7.34%
  • Scotland: Close behind with an average yield of 7.32%
  • North West: Offers an average yield of 6.52%
  • Northern Ireland: Has an average yield of 6.24%
  • Wales: Features an average yield of 6.23%

2. Which city is best for buy-to-let in the UK?

The top cities in the UK with one of the best BTL property returns are Birmingham, Southampton, and Nottingham. You can get a decent rental yield of around 7–8% based on your investment property.

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