Wednesday, February 12, 2025
HomeMortgageCardiff tops BTL investment hotspot list

Cardiff tops BTL investment hotspot list



Cardiff attracted the most buy-to-let (BTL) investment in 2024, followed by Birmingham and Plymouth.

According to lending data from Paragon, Cardiff’s CF24 postcode was the most popular with landlord customers looking for a BTL investment.

This postcode covers Cathays and Roath, which are popular areas with students and present an opportunity for student lets. The average rental yield in the area stands at 8.7%.

The second-most popular area for BTL investment was B29 in Birmingham, which includes Bournville, Edgbaston and Selly Oak. The average rental yield comes to 7.5%.

Plymouth took the third spot for BTL investment with the PL4 postcode, with its popularity attributed to student and key worker markets. The average rental yield is 9.6%, which is the second highest among hotspot locations.

The BTL investment list is rounded out by Leeds, Nottingham, Manchester, Gloucester, Liverpool, Stoke and Nottingham again.


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Postcode Weighted rental yield Most common type of property
CF24 – Cardiff 8.7% Terraced house
B29 – Birmingham 7.5% Terraced house
PL4 – Plymouth 9.6% Terraced house
LS6 – Leeds 7.9% Terraced house
NG7 – Nottingham 8% Terraced house
M14 – Manchester 9.1% Terraced house
GL1 – Gloucester 8.8% Terraced house
L15 – Liverpool 9.9% Terraced house
ST4 – Stoke 7.8% Terraced house
NG3 – Nottingham 8.7% Converted flat

 

Neil Smith, head of surveyors at Paragon Bank, said: “Looking at last year’s most popular postcodes amongst Paragon’s buy-to-let landlords highlights geographical concentrations of investment.

“Even though privately rented homes are in short supply all over the UK, landlords are strategic and often target locations with consistently high demand; cities where we see large transient populations, such as students and temporary workers, alongside more permanent residents like young professionals and families.”

He added: “There is also a notable propensity amongst buy-to-let landlords to invest in property types that can deliver strong yields, often terraced houses and houses in multiple occupation (HMOs).

“While serving distinct markets has advantages, it is wise to consider if a particular location could also appeal to other tenant cohorts to help investments remain profitable if there is a downturn in the primary market. The main takeaway here is to thoroughly research potential locations before jumping in with both feet.”





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