Introducing Magnate Assets' Latest Insights: Top Cities for Landlords in 2024

In its recent analysis, Aldermore has identified Bristol as the prime city for landlords to invest in for the year 2024. Following closely behind are Manchester, Coventry, Brighton, and London, rounding up the top five contenders.

Aldermore's evaluation delves into five pivotal indicators shaping the desirability of buy-to-let investments: average total rent, short-term returns via yield, long-term returns gauged through house price growth over the past decade, vacancy rates relative to total housing stock, and the percentage of city residents engaged in the rental market.

Bristol has surged to the forefront this year, boasting promising rental prospects, a substantial pool of long-term private renters, and a minimal number of vacant properties. The city showcases an annual return growth of 6.6%, although investors eyeing short-term gains might find the 4.4% yield less appealing.

Meanwhile, Manchester has slipped one place from its prior top ranking. Despite a lower average rent per room at £461 and a vacancy rate of 0.9%, below the national average of 1.2%, landlords are enticed by the city's robust long-term returns standing at 6.1%.

Southern English cities like Brighton, London, and Reading also present favorable prospects with higher average rents per room and robust rental demand.

In a notable first, a Scottish city has made its mark in the top 10, with Glasgow claiming the eighth spot. Offering landlords attractive rental returns at £471 and one of the highest short-term returns of 8.6%, Glasgow's performance surpasses the national average.

The data reveals a steady increase in the average rent per room over the years, signaling a resilient rental market. Aldermore's research further indicates a significant majority of landlords implementing rent hikes in response to heightened tenant demand.

At the opposite end of the spectrum, Newport and Swansea retain their positions at the bottom of the rankings. Newport, despite offering lower rent returns per room, showcases promising long-term yields at 4.9%.

However, there's a glimmer of progress as Cardiff climbs a few ranks, buoyed by a sizable proportion of private renters and a low number of vacant properties.

Jon Cooper, head of mortgages at Aldermore, emphasizes the evolving landscape for landlords amidst economic fluctuations and regulatory changes. Despite challenges, Cooper notes a continued demand for rental accommodations and underscores the importance of informed decision-making and portfolio optimization in navigating these dynamic market conditions.

Aldermore’s Buy to Let City Tracker 2023 Top 50 Ranking Table: