The government currently have many challenges to face one of which is Brexit and the negotiations that currently are being undertaken because leaving the EU will have an impact on all investment strategies. Over the years investing in property has been a relatively stable way of making money in the UK despite changes in tax laws and the rise of taxable profit many still see it as a viable option as the fundamentals look solid. Additionally if you take into account there is a growing demand for rental properties across the UK one reason being is because it is increasingly difficult for young individuals to get on the property ladder as lending companies are proving to be more restrictive in providing finance to people who are considered as first time buyers and the average age now for a first time buyer has now tipped above 35 years old which is the first time in history. Despite a falling house price growth they are forced to continue renting. With that in mind which areas of the countries currently provide the best yields. Overall private rental prices paid by tenants in Britain has risen according to office of national statistics. According to the Your Move Buy to Let index the top areas for landlords to invest in are:

1. Wales

Which has seen a growth of 8.5% in rent in the last 12 months to May. The typical property in Wales is renting for £602 pcm.

2. East of England

Is seeing an increase of 6.1% year on year to stand at £876 pcm

3. London

Which actually has seen a fall in rent in the last five months. But some experts have specified that falling rents in London should be seen in a wider economic context with the negotiations of Brexit being undertaken which is forcing the capital’s property market to take a pause for breath.

Other areas with strong performances were the South East where rent grew by 2.7% to reach £880 pcm. The East Midlands prices have increased by 2.5% and the North West saw a 2.1% growth. In the North West it is widely publicised that there will be a surge in the near future supported by the Northern powerhouse concept. 80% of brokers forecast that the North of England will be the new landlord hotspot over the next 12 months. As a result of the recent legislations 45% of brokers also predict landlords will invest in university towns and student accommodations of the higher performing universities such as Durham, Loughborough and Warwick universities which are providing the best yields between 5.22-4.91% yield.

With regards to Buy to Lets Scottish investors are doing even better than their counter parts in the South of the border. The average Scottish rental price has increased by 6% in the 12 months to April. The typical Scottish rental property letting £574 pcm. With all areas of Scotland seeing an average rental increase.

As always wherever you intend to invest always do your due diligence get to know the area, talk to agents locally and network with other investors in the area and make sure the demand is there to sustain your strategy.  I know I keep on emphasizing this point of research and due diligence but it really is important! You may look at the above yields and feel you can get more of a higher yield with a block of apartments or HMO however remember each investor has their own circumstances and reasons – therefore any property that is making a good return on investment is a viable investment proposition that should be considered along with your circumstances and situation.

Best of Luck!