University cities like Cardiff offer best BTL yields

Cardiff University main building - Stan ZurekThe rental market in Cardiff has been steadily growing for several years, with local landlords right here in South Wales as well as from further afield realising the potential that is on offer within the city and surrounding suburbs. One of the main reasons Cardiff is such a pull for landlords is the fact it’s an ever-improving city with significant student activity due to the three Universities that are located within the capital.

New research has backed this view, claiming that the best Buy-To-Let yields that Britain has to offer are achieved from home shares in busy university cities.

Rental yields regularly achieve over 7%

A study by financial web site Totally Money discovered that despite the challenging financial pressures that have burdened the country in recent times, such as rising mortgages and changes to tax, landlords can still expect to achieve yields that are above 7% on their rental properties if they are located within a popular university city.

According to the study, cities such as Cardiff, Manchester, Sheffield, Nottingham, Glasgow and Plymouth all deliver healthy buy-to-let returns of more than 7.25%. In some cases properties within these populated university cities are even fetching rental yields above 12%, with Liverpool having seen low house prices and high rents pushing average returns to as high as 12.63%.

Landlords need to know the facts to be successful

Joe Gardiner, head of brand and communications at Totally Money, believes that achieving a decent return on the majority of buy-to-let rental properties is becoming increasingly difficult due to several different factors that a landlord is unable to influence. Property prices are continuing to rise steadily, albeit more slowly, and changes that the government have made to the industry means that mortgage lenders are now extremely cautious.

Gardiner says that for a landlord to be successful in the buy-to-let market, they must enter property investment clued up with the appropriate facts and put themselves in the very best position to make the most of the things that they can influence. They must ensure their credit report is at a satisfactory standard to appease lenders, compare the market for the best buy-to-let mortgage rates and deals, and focus on investing their funds into properties that are in areas that will provide the highest yield.

The research makes it clear to see that buy-to-let hot-spots are located within these busy university cities that have thousands of students relocating to them every year, all in search of suitable accommodation that’s within easy reach of their university campus.

Here at CPS Homes, we’re Cardiff’s largest letting and estate agent, making us your perfect port of call for all your letting needs. We have a wealth of experience helping landlords across the city, so don’t hesitate to get in touch today so that we can help you find the perfect rental property, source tenants, or discuss our property management services with you. Call us today on 02920 668585, e-mail or pop into one of our three Cardiff branches.

17 April 2019


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