The North West’s two largest cities, Liverpool and Manchester, are repeatedly acknowledged as top buy-to-let locations. This is due to not only rental yields in the cities, but also factors such as strong capital growth rates and high tenant demand.
In Zoopla’s rental yield report, Liverpool’s average 7.7% yield and Manchester’s 6.6% yield are both high figures, but do fall below the average returns listed in other UK locations, such as Sunderland with a 9.3% rental yield.
However, when factoring in other investment requirements such as capital growth, regional data for Sunderland’s North East reveal lower potential long-term returns than can be found in the North West. The latest Residential Market Report from Savills shows that by 2029, the North West is predicted to see an average 31.2% capital growth, while the North East can expect a 26.4% increase.
This highlights the fact that although high rental yields are a great indicator of a good buy-to-let opportunity, it’s vital to assess every factor that can contribute to your investment.
