Top 10 Property Investment Hotspots for Landlords

2 mins
April 10, 2024

Manchester’s M14 postcode emerges as the prime spot for property investment, particularly for buy-to-let landlords, as per Paragon Bank's analysis of lending data for landlords with four or more properties. This area encompasses Fallowfield, Rusholme, Old Moat, and Ladybarn districts, strategically positioned between the University of Manchester and Manchester Metropolitan University. The allure lies in its substantial student population, making it an attractive option for landlords. With rental yields reaching up to 7.5%, it's no wonder Manchester's M14 postcode takes the lead.

Birmingham's B29 Postcode: A Close Second

Following closely behind is Birmingham's B29 postcode, which encompasses Selly Oak, Bournville, Edgbaston, Kings Heath, Northfield, and Stirchley districts. Selly Oak, in particular, boasts a significant student population, courtesy of Birmingham University's presence. Additionally, Edgbaston houses the renowned Queen Elizabeth Hospital, a key employer in the region. Despite being one of the pricier options on the list, with an average purchase price of £573,116, the area offers promising yields of up to 6.9%.

Durham's DH1 Postcode: A Thriving Investment Hub

Securing the third spot is Durham's DH1 postcode, where properties promise yields of up to 7.3%. With the University of Durham's Palatine Centre situated in Framwellgate Moor, the area proves to be a magnet for students, contributing to its popularity among landlords.

Terraced Houses Reign Supreme

Terraced houses dominate the investment landscape across the top locations, offering lucrative opportunities for landlords. However, in CW2 Crewe, multi-unit freehold blocks of flats emerge as the preferred choice among landlords.

Insights from Paragon Bank

Richard Rowntree, Managing Director at Paragon Bank, sheds light on the investment trends, stating, “Our data indicates that portfolio landlords strategically target major towns and cities across England and Wales, from Brighton and Hove in the south to Newcastle in the north. The common thread among these diverse areas is their proximity to universities or large employers, such as the NHS or manufacturing and distribution hubs. This underscores the pivotal role of the private rental sector (PRS) in supporting further education provision and the workforce, both integral components of the UK economy.”

Manchester: A Prime Investment Destination

Manchester stands tall as an unparalleled investment hub, attracting landlords with its dynamic economy, thriving educational institutions, rich cultural offerings, and excellent transport links. With a steady stream of students from prestigious universities and a vibrant rental market, the city promises consistent returns for property investors. Boasting steady appreciation in property values and attractive rental yields, Manchester presents an irresistible opportunity for landlords seeking long-term growth and profitability in the ever-evolving property market.

- Find out more about Manchester buy-to-let property investment

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