A flat in Bristol brings in around £11,092 in rental income a year, after mortgage payments and a 10% provision for maintenance costs have been deducted, according to Hamptons. Annual incomes are over £14,826 for a terraced house, among the highest for this type of property in the country.
An initial lump sum of £100,000 would be enough to cover the deposit for a semi-detached house in the town, at an average of £96,550, but stamp duty would push the total investment to £117,450. Landlords who can stretch their budget to this size can expect annual rental income after expenses of £17,681.
Manchester has seen a post-pandemic rental boom similar to Bristol. Tenants flocked to the city and took all available rentals, with new apartments proving particularly popular, according to Reside agency Rhiannon Durston.
She said: “The town has become increasingly popular with investors. Owners are targeting many different price points, ranging from those looking to invest their life savings in a single property to those buying several.”
The average rental yield in the city is 6.4% and a typical flat costs £175,380. Owners will need to make an initial investment of £50,120 to cover the deposit and tax bill, and can expect a profit after expenses of £7,885 per year.
Investing in townhouses and townhouses is also possible with a budget of £100,000. An initial down payment of £55,520 for a terraced house and £74,390 for a semi-trailer is required to cover the deposit and tax bill for each of these property types.
Homeowners can make a profit after expenses of £8,694 on a terraced house and £11,496 on a semi-detached house, according to Hamptons.