As experienced local property letting agents and investors too, we are well placed to work with buy-to-let investors. We offer buy to let advice for landlords in Nottingham and Mansfield, and the question we are asked most commonly is "what properties in Nottingham are the best type to invest in?" The truth is this differs for each individual investor and their investment goals, and we would need to know this before giving any suggestions. It is important to understand different property investment strategies and by how buying different properties they can perform in different ways. Do you wish to buy for high yielding cash flow or for long term capital growth, or a balance of the two? Do you want a ready-to-go opportunity or something you can add value by refurbishing before letting? Consider factors such as ‘gearing up’ (raising a mortgage) to help buy more properties rather than buying outright, freehold versus leasehold, different tenant types, expenditure for different property types and tax implications.
For portfolio landlords with numerous properties, taking an asset management perspective or service across the whole portfolio helps maximise your returns and portfolio value. It is important to review poorer performing properties and consider potential property disposals periodically, remembering tax benefits and implications as part of such reviews.
Buy to let has proved to be a great investment strategy due to a shortage of rented property supply compared with tenant demand, property prices and rents increasing, and returns being poor from more traditional investment options such as cash in the bank. The PRS now makes up around 21% of all UK housing, with depleting council housing and social housing numbers.
Nottinghamshire buy to let information:
The current average yield in the Nottingham is 6.6%, however we see many local property opportunities with gross yields between 7 - 8%. The current average private rent is £680 p.c.m. Nottingham is being regularly reported as one of the best locations in the UK, if not THE best, for best performing property investments, with some data sources confirming achievable yields of up to 11.9% (read further sources below). It was the fastest growing city in the UK for rental growth in 2019.
Nottingham's average rents are always rising, increasing by 6% in 2019 on 2018 . Property prices rose by 5% in 2019, with a predicted further 5.2% increase in 2020, which is the highest growth ranking out of the UK for 2020. Housing in northern Counties like the East Midlands are increasingly sought after, with them being more affordable and stable, and this includes the Private Rented Sector, where there remains a shortage of available rented homes.
Nottingham has approximately 32% of all homes being private rented, which is above average for the country, as normally circa 20% of an areas homes are private rented.
Nottinghamshire remains in the top places in the UK to invest in property, with over 50 national and regional headquarters already based within the city, including Boots, Capital One, EON, Speedo, Experian, Pendragon Motors and Centre Parcs, along with large hospitals, universities and further significant infrastructure and developments that are working progress for the next few years.
Further external sources links regarding Nottinghamshire / East Midlands buy to let:
Zoopla rental market reports - reporting Nottingham as highest rental growth in UK
Zoopla - regarding the East Midlands
Nottingham Post - Nottingham fastest rental growth in the UK in 2019
Property Investments UK - regarding Nottingham
This is Money - the best postcodes for investors
Homelet - 2019 UK rental report
How can we help you?
Once properties are acquired, see our other services here for our letting and management services.