Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

Earning Begins at Home: Best Places to Rent Out Property in the UK Revealed

  • The new tool by GoCompare allows you to compare two different cities showing you the best option.
  • Manchester rated as the best place to rent out a house with an average yield of 5.55%.
  • London is surprisingly in second position with the highest rates in all fields except average yield.

The UK’s property sector is a state of evolution with Millenials who are known for their need of freedom and limited desire to own financial assets such as homes, are dominating the renting market.

It’s clear that younger generations are more open to renting a house than buying. Even older members of the population are going for this option rather than buying a property.

GoCompare has researched the best areas for renting out a house and ranked them by average property price and rental yields, population under 35, number of properties available, number of letting/maintenance agencies, number of new housing developments, properties currently available for rent and rental price growth.

Average Property Price

If we decide between renting or buying a house, money is one of the main aspects to consider. The actual prices of properties will determinate if renting out is worth it. Have a look at some of the highest property prices in the country:

  • Stoke-on-Trent is in least expensive area to buy property with an average property price of £106k, making it the city the best place to buy a property and rent it afterwards. Landlords in this area will have the best potential to make good profits.
  • Oxford is one of the most expensive cities to buy a property with a price of £411k. Even though the city has one of the highest property prices, it might be good to consider renting out your property. The city is known for its university and the huge amount of students moving there looking for a place to leave while they start their university life is quite significant.
  • London is in first position with the highest price rent, at an average of £484k. The gentrification of areas and the facilities people have to move, plus the growing offer of jobs in the capital have made of London the most expensive city to buy a house, therefore renting out is it an option that needs to be consider really carefully.

Best-UK-City

Rental Price Growth

If you are considering renting out your house, another key aspect you need to consider is how fast the local rental price is growing, so you can predict how much you will be able to raise the rent of your house in the next few years.

  • Manchester takes the leading position on the ranking with a growth of a 5.76%. If you have doubts about putting your house in the property sector, this high growth rate might go some way towards assuaging those fears.
  • The second position on the ranking with 5.30% growth is Leicester, a worthwhile location for a would-be letter.
  • Cardiff can be found in the third position with a growth of 5%., becoming one of the top cities in the whole country, where taking advantage of buy-to-let can offer you the best returns.

Best-UK-City-ToBe-A-Landlord

Average Yield

The average yield of a property determines the profit you will obtain for renting it out – and its rise or fall will establish how much of a return the owner gets.

  • Manchester holds the top position. The average yield there is 5.55%, putting the city in a great position for property owners.
  • Sunderland takes the second position for yield with 5.37% – its best quality in terms of renting opportunities.
  • Liverpool is a hotspot for owners, occupying the third place with an average yield of 5.05%, and fourth position overall.

If you want to know more about the best areas for renting and their conditions, how the different cities have been rated, and even compare different cities you can find the rest of the piece here.