7 buy-to-let hotspots in 2022
Buy to let continues to be a popular way for people to invest their money. And as we enter a new year, landlords all over the UK will have their eye on the market to identify potential opportunities. The rental sector saw a boom in 2021, with growth reaching its highest level since 2008, which is encouraging news as we head into 2022. But which areas should you consider for your next rental property, whether it’s as an individual or a company? Allow us to bring you the lowdown on the buy-to-let hotspots you need to keep an eye on next year.
Emerging neighbourhoods on the Jubilee Line
So far, the Jubilee Line (Crossrail) has suffered setback after setback. But after what seems like an eternity, stations are beginning to open across London and beyond. Yet, the delays have led to an opportunity for landlords. Areas to the west of London, such as Hayes, West Drayton, Slough, offer lower-priced houses compared to prime neighbourhoods but will provide services to central London in around 20 minutes once their Jubilee Line stops go live. Over in the east, Ilford, Romford and Shenfield all have excellent travel links into London without the high prices. West Drayton, for example, has one-bedroom apartments on sale for £225,000 renting for around £1,050. That’s a yield of more than five per cent.
Yorkshire and the Humber
London has long been the buy-to-let hotspot in the UK, but the landscape is changing quickly. The North of England now offers excellent value for money, and nowhere is this more apparent than Yorkshire and the Humber. Rental yields average around 4.33% after increased investment in the region. While average monthly rent is around £967, according to findings from SevenCapital and Zoopla.
The West Country wasn’t previously known as a buy-to-let hotspot. But as work-from-home becomes increasingly normalised, a growing number of people are moving further away from London, and many have ended up in Bristol. As a result, a quarter of residents in the city currently rent. Even better, it has the lowest number of void periods and long-term house-price growth has averaged 5.1% every year since 2010. A one-bedroom apartment rents for around £1,200 and costs an average of £202,000, according to Home.co.uk. The result is an impressive yield of 7.2%.
It makes sense that Birmingham is a popular buy-to-let hotspot. After all, its location is right bang in the middle of the country. The UK’s second city continues to be a favourite with buy-to-let investors, with property prices rising by 17% in the last five years. House price and rental growth look set to continue trending upwards, with estimates suggesting a 19.5% rise for house prices and a 12% increase for the rental market by 2025. Currently, landlords can enjoy yields of around 6.5% with the right investment.
Another city that regularly appears on buy-to-let hotspot lists, Manchester continues to look like an attractive area for investment. You can buy a one-bedroom apartment in the city centre for £160,000 and expect to rent it for between £800 and £900 a month. With those numbers, you can enjoy yields of around six per cent. Continued investment in the city means prices are likely to increase further over the years, with new neighbourhoods, attractions and businesses all adding to the appeal of Manchester.
If you’re looking for properties on the London commuter belt, Stevenage might pique your interest. The Hertfordshire town offers trains to London in just 30 minutes and is also located nearby sprawling countryside. It’s not uncommon to find homes selling for £210,000 and renting for between £850 and £900 per month. It’s fast becoming a buy-to-let hotspot and a smart alternative to London.
If you’re looking for properties on the London commuter belt, Stevengage might pique your interest. The Hertfordshire town offers trains to London in just 30 minutes and is also located nearby sprawling countryside. It’s not uncommon to find homes selling for £210,000 and renting for between £850 and £900 per month. It’s fast becoming a buy-to-let hotspot and a smart alternative to London.
Final words: purchasing in a buy-to-let hotspot with Molo
There’s always a good deal to be found, especially with more cities and towns away from London appealing to investors. If you’re after a buy-to-let in 2022, browse the areas on our list and see if any of the stock meets your requirements. And if you need a mortgage to fund your purchase, we’re here to help with an entirely digital application that saves time, removes the hassle and offers an easier way to fund your next investment property.