This price premium is even more significant in certain regions. It was found that the North West was the area with the highest premium of 33% (£72,338) on the region’s wider average price of £217,525.
This is followed by the North East (30%) and Yorkshire and the Humber (29%). Even in the region with the lowest price premium for high rental demand areas, East of England, property still commands 15% more than the overall average for the area. This underscores the importance of choosing the best location when buying a rental property.
Director of Benham and Reeves, Marc von Grundherr, said: “Of course, where you invest is as important as what you invest in and identifying high-demand areas is vital when maximising the returns available. What’s more, investing in a high rental demand area is also likely to protect the value of your investment in the long run, with properties in these locations commanding impressive premiums when compared to the wider region.”