Blackburn tops buy-to-let hotspots

Landlords in the Lancashire town saw average yields rise from 4.13% to 5.69%. Carlisle also enjoyed a strong performance over the year with average yields increasing from 3.47% to 4.73%.

Christian Faes, co-founder and chief executive of LendInvest, said: “Savvy property investors won’t only look out for which areas will offer the best returns right now, but are considering the best growth for the months and years to come. That means spotting areas which will become more popular in the future. That may be due to improved transport links, for example those towns which are due to be on the new HS2 line, or those which are due to benefit from new infrastructure projects, which will bring additional employment into the region.”

The picture was not so rosy in other areas of the country with eight areas recording a fall in yields for the year of over 20%. The biggest faller was Durham, where yields dropped from 7.09% to 4.76%.

Chester recorded the second biggest fall in yields from 6.83% to 4.76% while Croydon was third with a move from 5.01% to 3.57%.

Ying Tan (pictured), managing director at The Buy to Let Business, commented: “Interest in the buy to let sector remains strong as many investors are tempted by the impressive rates which are currently on offer. As more lenders increase their rental calculation, we are certainly finding that our landlords are showing a greater interest in areas further afield in order to secure rates at a more competitive LTV. This is particularly the case for landlords based in London and the South East. Historically we have found that landlords prefer to invest locally, so this does appear to be a trend that is growing as a result of the market changes.”