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:

Ranking

City

Region

Overall Score

2021 ranking

1

Bristol

South West

70

Manchester

2

Manchester

North West

69

London

3

Coventry

West Midlands

68

Bristol

4

Brighton

South East

67

Cambridge

5

London

London

67

Peterborough

6

Cambridge

East

66

Milton Keynes

7

Portsmouth

South East

66

Luton

8

Glasgow

Scotland

65

Reading

9

Basildon

East

65

Southend

10

Milton Keynes

South East

64

Coventry

11

Reading

South East

62

Oxford

12

Luton

East

61

Basildon

13

Peterborough

East

61

Norwich

14

Swindon

South West

61

Brighton

15

Northampton

East Midlands

60

Nottingham

16

Southend

East

59

Birmingham

17

Nottingham

East Midlands

59

Glasgow

18

Edinburgh

Scotland

58

Southampton

19

Norwich

East

58

Swindon

20

Maidstone

South East

55

Chelmsford

21

Birmingham

West Midlands

55

Edinburgh

22

Chelsmford

East

54

York

23

Belfast

Northern Ireland

53

Portsmouth

24

York

Yorkshire

53

Northampton

25

Wigan

North West

53

Maidstone

26

Hull

Yorkshire

50

Plymouth

27

Liverpool

North West

50

Telford

28

Oxford

South East

50

Leicester

29

Bournemouth

South West

50

Bournemouth

30

Derby

East Midlands

49

Liverpool

31

Southampton

South East

48

Stoke

32

Telford

West Midlands

48

Derby

33

Plymouth

South West

48

Wigan

34

Leicester

East Midlands

47

Hull

35

Leeds

Yorkshire

45

Wakefield

36

Newcastle

North East

41

Barnsley

37

Sheffield

Yorkshire

41

Newcastle

38

Doncaster

Yorkshire

41

Warrington

39

Barnsley

Yorkshire

39

Leeds

40

Cardiff

Wales

39

Belfast

41

Warrington

North West

39

Doncaster

42

Bradford

Yorkshire

38

Dundee

43

Wakefield

Yorkshire

36

Cardiff

44

Dundee

Scotland

35

Aberdeen

45

Stoke

West Midlands

35

Bradford

46

Aberdeen

Scotland

32

Wolverhampton

47

Sunderland

North East

31

Sheffield

48

Wolverhampton

West Midlands

28

Sunderland

49

Newport

Wales

18

Newport

50

Swansea

Wales

15

Swansea




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