It’s fair to say that landlords in the UK have had it tough of late. However, political uncertainty, Brexit and punitive tax hikes aside, the PRS is thriving in many parts of the country. Here, lettings management platform, Howsy, takes a closer look at some of the best.
Howsy looked at the average annual rent in every area of the UK and what it equates to as a percentage of the cost of a property to find the areas that provide a better than average rental return as a proportion of overall house price.
Across the UK the current annual rent of £11,436 accounts for 4.9% of the average UK house price (£234,370).
But where in the UK sits way above this national average?
Scotland is home to the highest rental incomes as a proportion of property price
Scotland seems to be the place to invest for landlords, with 18 out of the top 20 areas with the highest annual rent as a proportion of house price located north of the border.
Glasgow tops the table with the annual rent of £10,596 accounting for a huge 7.7% of the average house price, closely followed by Inverclyde (7.1%), Midlothian (6.9%) and West Dunbartonshire (6.9%).
Burnley is the highest outside of Scotland and across England at 6.5%, with Belfast ranking 10th (6.2%), while County Durham and Blackpool place 17th and 18th (5.7%).
Calum Brannan, Founder and CEO of Howsy said, “There are a whole host of costs to account for when investing in a buy-to-let property but the most important is, of course, the rental income available.
“However, high rental income doesn’t necessarily mean an area offers the best investment option and if it requires a high initial cost to buy the property, you could be recouping that investment for longer than you might in other areas with a lower rental income.
“It’s about finding that balance and areas such as Glasgow not only offer a relatively affordable property cost to begin with, but the rental income available as a proportion of house price is far higher than anywhere else in the UK.”