Buy to Let: where should and shouldn’t you invest?

If you’re thinking about a Buy to let investment, first and foremost you need to think about what areas you will consider

With so many factors impacting on it, it’s safe to say that a Buy to Let investment is a serious decision. In the last two years, factors such as changes to stamp duty, new EPC regulations and the first hike in interest rates in a decade has transformed the landscape of Buy to Let, making it even more important to do your research and think it through thoroughly beforehand.

However, choosing your desired location to invest in is possibly the most important decision you’ll have to make. But which areas are considered the best places to invest in 2018, and which areas does the research say you should avoid? The team at Glenhawk take a closer look.

Where you should consider investing in Buy to Let

According to recent findings from the 2017 Property and Construction Outlook survey from Crowe Clark Whitehall, the South East of England is considered the best place to invest in property over the next twelve months. The survey found that 31% of those professionals asked believed that the South East was the region which offered the best outlook for property investment in 2018. However, this excluded London.

A large part of what makes the South East such a lucrative Buy to Let opportunity at the minute is the development of Crossrail. As well as this, the residential slowdown of London itself is also helping to boost the Buy to Let investment potential of the South East.

The survey also found that the West Midlands and North West of England are considered smart investment choices for 2018, gaining 19% and 13% respectively. These areas remain attractive on a yield/income basis.

Birmingham is another smart choice for Buy to Let investment, having become the biggest professional and financial services hotspot outside of London. It also benefits from its central location and easy transport links.

Manchester, as the fastest growing city outside of the capital, is also a contender for Buy to Let property investments. Areas such as Salford, Chorlton and Fallowfield boast high return on investments, and yields average twice those in London. Elsewhere, Liverpool is another fast-growing hub with one of the lowest average house prices in England. Both Manchester and Liverpool also have high student populations, creating strong rental opportunities.

Where you shouldn’t consider investing in Buy to Let

Arguably the settlement to avoid most in the UK when it comes to Buy to Let investments is St. Ives. Thanks to its own referendum controversy in 2016, the matter of second-home purchases in St. Ives was widely publicised as many residents battled in favour of making it impossible for second-home purchasers to invest in newbuild apartments and homes.

The reason? Properties in St Ives average one of the highest house prices in the entire UK, at £324,000. This is around 18 times the average salary of the area.

And the extra 3% stamp duty on Buy to Lets and holiday homes doesn’t make it any easier to make a success of your Buy to Let. It’s more important than ever to do your research thoroughly before investing in a Buy to Let opportunity.

If you are considering a Buy to Let investment in 2018, seek advice and guidance from experts who understand the financial landscape. If you are looking for a commercial loan in the South East, the team at Glenhawk are always available to help.