Nearly half of all purchases in northern town are by BTL investors
Hamptons' research reveals around 40% of purchases in Middlesbrough are made by landlords, as canny investors target high-yielding areas.
According to Hamptons towns in Wales and the North are bucking the trend for landlords selling up with 40% of residential purchases in locations such as Middlesbrough the result of BTL investments.
And it’s a similar story in Derby where 35% of sales are BTL investments, 33% in Peterborough and 30% in York and Darlington.
The reason for all the activity in those areas is that yields there are some of the highest in the country.
Yields in Middlesbrough for example are 9% compared to the national average of 7.3%. Average UK savings rates are currently less than half that at 4.10%.
Ben Quaintrell, of Darlington estate agency My Property Box told the Telegraph: “The property lettings market has gone crazy.” Then adds that 35% of those buyers are “from out of the area and coming from different parts of the country.”
Most of the highest-yielding locations are in better- value areas. The biggest yields of all are to be found in Blaenau Gwent in Wales, where landlords can expect to see a 10.6% return on their investment.
The North East is another high-yielding hotspot, with South Tyneside producing 10.6% and Sunderland 10%.
The majority of the lowest-yielding areas are in the more expensive southern regions. Westminster is at the very bottom of the pile at 4.3% with Kensington not far behind at 4.9%.
