The latest research by lettings management platform, Howsy, has looked at where across the UK offers the best rental yields for a buy-to-let investment when it comes to staycation potential.
Howsy looked at the current rental yields available across 12 of the most popular city staycation, the 12 most popular coastal staycations and 12 of the best spots for a countryside staycation.
There’s a clear winner where rental yields are concerned.
The 12 most popular city staycations are home to an average rental yield of 5.1%, just above the current UK average of 5% overall.
Glasgow (7.9%), Newcastle (5.6%), Manchester (5.5%), Nottingham (5.4%), and Leeds (5.2%) are amongst the best for above-average rental yields at present.
At 4% overall, costal staycations make the next best buy-to-let investment. While the majority of locations come in with a rental yield below the UK average, Blackpool bucks the trend with a current rental return of 6%.
At 3.9%, the average rental yield across the top countryside staycations is marginally lower than those found on the coast. While none of these locations see current rental yields surpass that of the UK average, Oxford (4.8%), Glencoe (4.5%) and Inverness (4.5%) make the best countryside investments in the buy-to-let market.
Founder and CEO of Howsy, Calum Brannan, commented:
“There’s one clear winner when it comes to a staycation buy-to-let investment, and that’s the city. Of course, not all city locations are as profitable as the likes of Glasgow or Newcastle. Still, they do tend to benefit from higher demand due to the larger population living, working and visiting them.
Not only does this high demand tend to result in a better rental return, but it generally means shorter void periods which can also have a significant impact on profitability.
That’s not to say you can turn a profit when investing in the country or by the coast. As always, finding the right buy-to-let should be based on a range of factors above and beyond the yield available.”