Welcome!

News Feed Item

HSBC Identifies Buy to Let Hotspots in England & Wales

- Southampton tops the list with a rental yield of 7.82%

LONDON, UNITED KINGDOM -- (Marketwired) -- 04/20/13 -- Rental yields of 7.82% and private rental accommodation making up almost a quarter of its housing stock make Southampton the best place in England and Wales for buy to let (BTL) investors according to research from HSBC.

Of the fifty towns and cities with the highest concentration of private rental housing stock, Southampton topped the list for rental yield due to relatively affordable housing and an average rent of GBP 901 per month. The relatively inexpensive property prices in Blackpool, Hull Manchester and Nottingham mean that these four Northern areas make up the rest of the top 5, offering strong returns for BTL investors with yields of 7.81%, 7.77%, 7.60% and 7.55% respectively. In sixth place, Coventry is the only other city offering returns above seven per cent with a yield of 7.13%.

Despite the high proportion of private rentals in the capital, London does not score highly in terms of rental yields due to the comparably high property prices. The top performing borough in the capital, Southwark, is 13th overall while the affluent London boroughs of Hammersmith and Fulham and Kensington and Chelsea are ranked in the bottom two places in the top 50 due to the high initial outlay to purchase a property, generating returns of just 3.42% and 3.34% respectively.

Table 1: Top 10 BTL Hotspots by Rental Yield


----------------------------------------------------------------------------
                                     Average    Average Rent    Rental Yield
Location                      Property Price       (Monthly)         (gross)
----------------------------------------------------------------------------
Southampton                      GBP 138,311         GBP 901           7.82%
----------------------------------------------------------------------------
Blackpool                         GBP 75,943         GBP 494           7.81%
----------------------------------------------------------------------------
Kingston upon Hull                GBP 69,519         GBP 450           7.77%
----------------------------------------------------------------------------
Manchester                       GBP 102,631         GBP 650           7.60%
----------------------------------------------------------------------------
Nottingham                        GBP 83,313         GBP 524           7.55%
----------------------------------------------------------------------------
Coventry                         GBP 104,970         GBP 624           7.13%
----------------------------------------------------------------------------
Slough                           GBP 171,581         GBP 975           6.82%
----------------------------------------------------------------------------
Oxford                           GBP 244,893       GBP 1,375           6.74%
----------------------------------------------------------------------------
Liverpool                         GBP 91,012         GBP 498           6.57%
----------------------------------------------------------------------------
Portsmouth                       GBP 141,971         GBP 775           6.55%
----------------------------------------------------------------------------

Seaside Towns

Due to holiday rentals and seasonal work, many seaside towns are BTL hotspots with 17 of the top 50 areas found on the coast. Blackpool tops the seaside town list with a yield of 7.81%. The rest of the top ten is made up of southern seaside areas, including holiday destinations such as Brighton, Bournemouth and Eastbourne. While property prices tend to be higher in these areas, rents are also above average, meaning yields are strong for investors.

Table 2: Top 10 Seaside BTL Hotspots by Rental Yield


----------------------------------------------------------------------------
                                     Average    Average Rent    Rental Yield
Location                      Property Price       (Monthly)         (gross)
----------------------------------------------------------------------------
Blackpool                         GBP 75,943         GBP 494           7.81%
----------------------------------------------------------------------------
Bournemouth                      GBP 170,493         GBP 825           5.81%
----------------------------------------------------------------------------
Brighton and Hove                GBP 229,622       GBP 1,049           5.48%
----------------------------------------------------------------------------
Torbay                           GBP 139,168         GBP 598           5.16%
----------------------------------------------------------------------------
Southend-on-Sea                  GBP 152,171         GBP 650           5.13%
----------------------------------------------------------------------------
Shepway                          GBP 181,399         GBP 695           4.60%
----------------------------------------------------------------------------
Eastbourne                       GBP 177,408         GBP 675           4.57%
----------------------------------------------------------------------------
Isles of Scilly                  GBP 180,227         GBP 654           4.35%
----------------------------------------------------------------------------
Hastings                         GBP 177,408         GBP 550           3.72%
----------------------------------------------------------------------------
Thanet                           GBP 181,399         GBP 524           3.47%
----------------------------------------------------------------------------

London

Due to London's high property prices, its rental yields are relatively modest on the whole. Southwark tops the list of boroughs with a yield of 6.15%. Areas in Outer London offer some of the strongest yields in the capital including Newham, Enfield, Brent and Kingston upon Thames. Just three of the top ten areas are in inner London and each of these is in the East of the city, traditionally the more affordable end of the capital.

Table 3: Top 10 London BTL Hotspots by Rental Yield


----------------------------------------------------------------------------
                                     Average    Average Rent    Rental Yield
Location                      Property Price       (Monthly)         (gross)
----------------------------------------------------------------------------
Southwark                        GBP 401,405       GBP 2,058           6.15%
----------------------------------------------------------------------------
Newham                           GBP 229,141       GBP 1,126           5.90%
----------------------------------------------------------------------------
Enfield                          GBP 261,163       GBP 1,200           5.51%
----------------------------------------------------------------------------
Brent                            GBP 337,723       GBP 1,517           5.39%
----------------------------------------------------------------------------
Kingston upon Thames             GBP 333,122       GBP 1,363           4.91%
----------------------------------------------------------------------------
Hounslow                         GBP 285,927       GBP 1,148           4.82%
----------------------------------------------------------------------------
Wandsworth                       GBP 428,987       GBP 1,694           4.74%
----------------------------------------------------------------------------
Lewisham                         GBP 283,031       GBP 1,101           4.67%
----------------------------------------------------------------------------
Tower Hamlets                    GBP 364,296       GBP 1,387           4.57%
----------------------------------------------------------------------------
Harrow                           GBP 306,381       GBP 1,148           4.50%
----------------------------------------------------------------------------

Peter Dockar, head of mortgages at HSBC commented, "Buy to let remains a good investment for those looking for above average returns. Twenty-three of the top 50 areas offer yields above 5%, significantly more than is available from more traditional savings options.

"However, it is clear there is a fine line between a property in a desirable area, the rents that can be achieved and the returns that can be yielded so it is key landlords do their research as often the most popular locations may not offer the best return."

HSBC offers a range of competitive Buy to let mortgages for its current account customers. For more information visit hsbc.co.uk/buy-to-let-mortgages.

HSBC Bank plc: HSBC serves 16.1 million customers in the UK and employs approximately 52,000 people. In the UK, HSBC offers a complete range of personal, premier and private banking services including bank accounts and mortgages. It also provides commercial banking for small to medium businesses and corporate and institutional banking services. HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc.

The HSBC Group: HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 7,500 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, and the Middle East and Africa. With assets of US$2,556bn at 31 December 2011, HSBC is one of the world's largest banking and financial services organisations.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...