Certain areas have emerged as gold mines for savvy investors, particularly those holding a portfolio of properties. Recent research has spotlighted the prime locations for buy-to-let (BTL) landlords, with Manchester’s M14 postcode leading the charge as the nation’s most coveted spot for real estate investment.
Manchester’s M14 A Magnet for Investors
Nestled in the heart of the North West, the M14 postcode encompasses vibrant neighborhoods such as Fallowfield, Rusholme, Old Moat, and Ladybarn. Its allure to investors isn’t just in its bustling streets and community vibe but also in its strategic position near two major educational pillars: Manchester and Manchester Metropolitan Universities. This proximity makes M14 a hotspot for student housing, offering portfolio landlords – those with four or more properties – potential rental yields as high as 7.5%.
The Appeal of Terraced Houses and Beyond
The research, conducted by Paragon, unveils that across the top BTL destinations, terraced houses reign supreme as the preferred choice of property investment. This trend holds true everywhere except in Crewe, where investors have shown a penchant for multi-unit freehold blocks. This preference underscores the versatility and strategic investment approaches tailored to different locales’ unique demands.
Strategic Investment in Major Towns and Cities
Portfolio landlords are not casting their nets at random. According to Richard Rowntree, Paragon’s managing director, “Our data shows that portfolio landlords have a strategy of targeting major towns and cities across England and Wales, from Brighton and Hove on the south coast, up through the Midlands and Wales and onto Newcastle. Something that links many of these diverse areas is their proximity to universities or large employers, such as the NHS or manufacturing and distribution hubs. This helps to illustrate the crucial role that the PRS plays in supporting further education provision and the workforce, both vital facets of the UK economy.”
Birmingham’s B29 and Durham’s DH1
Hot on the heels of Manchester’s M14 is Birmingham’s B29 postcode, which includes areas like Selly Oak, Bournville, and Edgbaston. With landmarks such as Birmingham University and the Queen Elizabeth Hospital, B29 attracts a mix of students and professionals alike, offering potential rental yields up to 6.9%. This makes it the most expensive postcode among the top picks, noted for its large period properties.
Not far behind, Durham’s DH1 postcode makes its mark, buoyed by the University of Durham’s Palatine Centre. The vibrant student market here offers investors potential yields of up to 7.3%, underscoring the area’s appeal to those looking to capitalise on the educational sector.