Published: 19/04/2021 By ARThe demand for rental property is such that it is easy to see why so many people are interested in being a landlord. There are many challenges associated with being a landlord, but with help from an experienced and local letting agent, there are genuine opportunities for investors and landlords to enjoy a great return on their money.
Of course, some parts of the country are more attractive to landlords than others. A recent study carried out by CIA Landlords looked at locations where landlords can enjoy the most profit from the buy-to-let sector.
Leeds ranks well for landlords looking to enjoy profit
You will be pleased to hear Leeds ranked 4th for the whole of the country. After accounting for rental fees and the general costs associated with being a landlord, it was found that landlords in Leeds enjoy an average monthly profit of £477.60. Over the course of a year, this equates to more than £5,700 in profit.
At Dwell, we are estate and letting agents in Leeds who focus on the highest quality service and customer care. We want landlords to enjoy the best standard of service in caring for their tenants, and we look to provide support which maximises a landlords’ profit. If you would like to hear more about our range of property management services, please get in touch today.
Other areas that were listed as being attractive include Brighton, Bangor, Portsmouth and Lancaster; who alongside Leeds make up the top five.
Not all parts of the country are flourishing in the rental market
It should be noted that landlords in some aeras experience significant challenges in letting property. In St Albans, it was highlighted that many landlords make a loss of £700 per month. The study also showed that only six London boroughs were, again on average, allowing landlords to generate a positive return on their money.
There is no denying there has been a shift away from London in the property and rental market in recent times. If you are looking for guidance on why Leeds is a great option for buyers, landlords and tenants, please contact Dwell today.
Stuart Williams, director of property investment firm Thirlmere Deacon, commented: “Over the last few months, some landlords have seen their profits dented due to the Chancellor’s tax measures that are only now taking effect. Undoubtedly, it is becoming more difficult for amateur investors to make a profit in the buy-to-let market due to legislation changes and financial pressures, [but] there is still a lot of money to be made if landlords and investors make the right investment decisions.”
Stuart Williams also said; “If investors can purchase cheaper properties with higher yields, they will have the opportunity to protect and boost their profits in the longer term. For example, an average residential property in London is around £500,000 with rental yields of circa 2%, while a flat in a good area of Manchester could cost half the price and generate 6-7% rental yields on top of 4-5% annual capital appreciation.”
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