The report examined 310 local authorities across England and Wales
Colourful houses in Totterdown, Bristol(Image: Ben Birchall/PA Wire)
Bristol is the best place in the South West to be a buy-to-let landlord, new research has revealed. The city tops the regional ranking in a new property index examining 310 local authorities across England and Wales.
The report, by property investment firm ERE, measured average property prices, annual rental yield, five-year property price growth, private-rented sector share, and average monthly rent.
Bristol ranked first in the West Country with an annual rental return of 6.5 per cent – the second-highest of any local authority in the country, behind only Newcastle upon Tyne. The average property in Bristol now costs £346,796 and 26.2 per cent of households rent privately, according to the report.
The South West city was named the 14th best-performing in the UK.
In second place on the regional list was Plymouth, with an average property price of £217,671 and the strongest five-year price growth in the South West top 10 at 24.8 per cent.
Gloucester came in third with an average property price of £238,506 and an annual return of 5.5 per cent, while Exeter ranked fourth with the second-highest private rented sector share in the regional top five at 24.9 per cent. Bath and North East Somerset meanwhile placed fifth.
Helen Mercer-Jones, managing director at ERE Property , said: “London is no longer the default choice for the modern landlord.
“With only one London borough even making the top 50, our research highlights a massive geographic pivot in the UK property market. For those seeking returns above six per cent or seven per cent, the smart money is moving North to cities that offer both lower barriers to entry and a much higher ceiling for rental growth.”
At the other end of the regional table, South Hams in Devon ranked last of the South West’s 25 local authorities, with an annual return of 3.46 per cent on an average property price of £345,188. East Devon, Forest of Dean, Cotswold and Stroud completed the regional bottom five.
Across the wider UK index, the strongest performers were concentrated in the north of England, with seven of the top 10 areas in the North West or North East.
Manchester took first place nationally with an annual return of 6.4 per cent and a property price below the UK average. Newcastle upon Tyne was ranked second – and the only local authority in the country to deliver an annual return above seven per cent, while Blackpool was third with the cheapest average property price among the top 10 at £136,609.
Just one London borough – Newham at 38th place – made the top 50, while Kensington and Chelsea finishes last of the 310 areas, with the highest average property price in the country and a price tag that has fallen by 10.5 per cent over the past five years.
The South West’s top 10 buy-to-let areas and average property prices
Source: ERE Property
1. Bristol, £346,796
2. Plymouth, £217,671
3. Gloucester, £238,506
4. Exeter, £285,699
5. Bath and North East Somerset, £399,351
6. Bournemouth, Christchurch and Poole, £306,533
7. Torbay, £230,232
8. Swindon, £256,238
9. South Gloucestershire, £333,391
10. Cheltenham, £331,125
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