Our lovely seaside town of Southend-on-Sea in Essex, where we base our office, hit the property headlines recently as our town was named the top spot for buy-to-let.
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The study carried out by the mortgage broker, Private Finance, found that the average annual rental income was £23,280 while the average house price was only slightly higher than the national house price average. This means that buy-to-let landlords can expect a lucrative return from a fairly modest initial property investment.
As Southend residents, it doesn’t surprise us that Southend is an up-and-comer when it comes to property investment. There’s good access to public transport (from one of the many train stations dotted around the Southend area) with an hour’s commute from London. In addition to a multi-award winning, international airport that has topped Best Airport in the UK by Which? for several years in a row.
Southend not only attracts professionals who commute into London or Europe, but also students who attend Southend’s college or university.
Shaun Church, the Director of Private Finance, has commented:
Southend is a popular spot for renters, with all the benefits of living in a popular seaside town less than an hour’s commute from central London, and with good airport connections.
With the high cost of renting pricing many out of the city, towns in a commutable distance from London that offer a more relaxed lifestyle at an affordable price are becoming increasingly popular amongst young professionals. Rental demand is likely to grow in these pockets outside of London, offering good opportunities for buy-to-let investors.
It’s been said for years that London is growing eastward.
Buy-to-let location statistics alone won’t help you in your search for your next property investment, but it can guide you to areas that you should be paying attention to before you drill down on a hyperlocal level. What we can learn from this top 10 list is that urban areas are still most definitely where you should be looking. Not only that, but all ten locations on the list have a significant population of young professionals and students who contribute to the rental demand.
Location is the most important thing to consider when looking to invest in buy-to-let, but not all properties in a location are equal. Different types of properties will obviously attract different types of tenants, and this too will depend on the rental market and demographic of the town. Sometimes the property with the lower potential yield can be the better choice; for example, if there is a higher likelihood of steady tenancy with short void periods.
If you’re a local Southend landlord who would like to purchase their landlord insurance from a reputable local landlord insurance broker, pop into our office! Otherwise, we can provide you with quick and easy quotes online no matter where you or your UK property is based. We can help you to get the best deal on your entire landlord portfolio!