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Liverpool and Nottingham offer best rental yields: Private Finance

Liverpool and Nottingham are the UK’s best performing property investment locations, according to a report analysing buy-to-let hotspots in the UK.

The analysis from mortgage broker Private Finance shows that rental yields of 6.2 per cent are achieved in both cities, once mortgage costs are taken into account.

Cardiff enjoys the third best rental yields, the report finds, achieving 6 per cent yields, with rents having increased from £946 per month to £1,301 since last year.

Southampton and Greater Manchester took fourth and fifth place in the top 10, with Coventry, Edinburgh, Leicester, Brighton-and-Hove and Bournemouth, making up the remainder of the list, respectively.

Private Finance director Shaun Church (pictured) says: “Finding the right buy-to-let location is a careful balancing act. Too large an initial investment makes it difficult to achieve a healthy yield, but landlords must also be confident that property values will appreciate at a higher rate than mortgage borrowing to achieve a long-term profit.

“Strong rental demand is also key to prevent lengthy void periods that can damage affordability. While there has been some movement in the top 10 buy-to-let hotspots, larger cities and university towns tend to offer the greatest opportunity for investors as they offer the highest rental demand.”

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