Warrington tops the list of towns in the UK where landlords are likely to make a loss on their investment, according to new figures.
Agency and law firm Coulters found Warrington ranked the worst city for landlords in terms of ROI. While the average house costs £254,189, the average rental price is just £566 pcm, making it difficult for landlords to claw back a profit¹.
Coulters’ data was calculated by taking the average price of house in 50 cities and working out the mortgage repayments based on a 35-year term, 20% deposit and 3%interest rate
Making up the top 10 were Cambridge, Crawley, Poole, Swindon, Reading, Perth, Luton, Doncaster and Oxford.
With the exception of Warrington and Doncaster (also in the top 10), the north of England generally produces high ROI.
The Lancashire city of Preston offers the best return on investment, according to Coulters, with the average home selling for £176,378 and the average rental price at £981 pcm. This gives landlords a profit of £438 per month and £5,256 per year, giving an ROI of 2.98%.
Other cities in the top 10 best performing areas were Coventry, Glasgow, Swansea, Dundee, Manchester, Paisley, Leeds, York and Stoke on Trent.
Here’s Coulters’ full list of best investments in full:
1. Preston – £5,256 profits per year – 2.98% ROI
2. Coventry – £6,033 profits per year – 2.74% ROI
3. Glasgow – £4,836 profits per year – 2.67% ROI
4. Swansea – £4,478 profits per year – 2.54% ROI
5. Dundee – £3,965 profits per year – 2.47% ROI
6. Manchester – £5,015 profits per year – 2.14% ROI
7. Paisley – £2,746 profits per year – 2.12% ROI
8. Leeds – £4,339 profits per year – 1.90% ROI
9. York – £5,405 profits per year – 1.85% ROI
10. Stoke-on-Trent – £2,481 profits per year – 1.73% ROI
¹ UK Landlord Index https://www.coultersproperty.co.uk/blog/uk-landlord-index/
The opinions and views expressed in the above articles are those of the author only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information.