Brandon, Suffolk, in the East of England and Rutherglen and Cumbernauld, in Lanarkshire, Scotland, are the top three places to invest in buy-to-let property at the moment, new research from Keepmoat shows.
Retirees can take advantage of the good returns and add some extra income to their pension, the company, specialising in community regeneration and housebuilding, says.
Mark Knight, regional managing director of homes at Keepmoat, explains:
“This is a really diverse list of locations and it shows that even if you only have a limited amount to spend you can make a great investment in buy-to-let property. All the locations in our top 20 have a potential average rental yield of over 6% and some offer an average house price of less than £70,000.
“There are lots of advantages to buying a brand new home as a buy-to-let property, not least as you can be ready to rent from day one. There are no delays in improving the home to bring it up to a rentable standard, saving both time and money.
“Many first-time investors buy close to where they live, which makes a lot of sense as they obviously know the area. But, if the rental demand is not there, then you should look further afield; don’t be afraid of following the demand, wherever that is in the country.”
Top 20 spots in Britain for investing pension funds in buy-to-let property (median rental yield)
- Brandon, Suffolk, England (8.59%)
- Rutherglen, Lanarkshire, Scotland (7.92%)
- Cumbernauld, Lanarkshire, Scotland (7.83%)
- Renfrew, Renfrewshire, Scotland (7.5%)
- Grangemouth, Falkirk, Scotland (7.45%)
- Methil, Fife, Scotland (7.37%)
- Tonypandy, South Wales, Wales (7.2%)
- Lakenheath, Suffolk, East of England (7.2%)
- Leeds, West Yorkshire, England (6.94%)
- Paisley, Renfrewshire, Scotland (6.8%)
- Clydebank, Dunbartonshire, Scotland (6.78%)
- Trealaw, South Wales, Wales (6.77%)
- Alexandria, Dunbartonshire, Scotland (6.76%)
- Penygraig, South Wales, Wales (6.75%)
- Bootle, Merseyside, England (6.75%)
- Shildon, County Durham, England (6.7%)
- Felling, Tyne and Wear, England (6.6%)
- Bellshill, Lanarkshire, Scotland (6.58%)
- Greenock, Inverclyde, Scotland (6.56%)
- Elderslie, Renfrewshire, Scotland (6.52%)
