The top investment location for landlords will be Bristol next year thanks to thriving capital appreciation and tenant demand.
Aldermore Bank has put the West Country city at the top of the pile in its buy-to-let tracker, which ranked cities based on rents, yields, house price growth, vacancies and tenant demand.
Bristol has the lowest number of long-term vacancies out of 50 cities measured in the index, while more than a quarter of its current population rents in the city.
Average rents in Bristol are £514 per month, while property prices have risen by 5.1% on average every year since 2010.
The city actually offers below average yields of 4.6%, but the other factors put it at the top of the list.
Sam Pagett, of Savills lettings agents in Bristol, told The Telegraph: “From one bedroom flats up to houses that rent for £4,000 per month, everything is getting competitive bids.
“Over the summer, our applicant numbers were 40pc up on normal levels.
“Between July and October, some properties were going for 30pc over 2019 prices. One property that went for £1,000 per month two years ago went this year for £1,300.”
Oxford and Cambridge are the second and third best, followed by Manchester and Luton.
Luton has seen average annual growth of 5.2% since 2010.
Swansea, Newport and Sunderland are the worst areas for investors according to Aldermore, due to the over availability of stock compared to tenants in the cities.
Norwich has improved most, rising to the tenth best area for investors, compared to 21st in the last index. Tenants are apparently moving to East Anglia in droves from the likes of London and Cambridge, ramping up demand.
It’s a similar story in Oxford, which is picking up tenants who used to live in London.