A new report examining the buy-to-let potential of the UK’s cities has placed Swindon well within the top 25, marking a new era of investment and regeneration for the city and its surrounding regions. The report, conducted by Aldermore Bank, named Manchester as the outright best city for buy-to-let investment in the UK, with Swindon appearing as the second-most lucrative area for investment in the South-West.
The Buy-to-Let City Tracker
The ‘Buy-to-Let City Tracker’ is an annual report, designed to evaluate the buy-to-let potential possessed by the different city regions of the UK. To do this, it takes five different key indicators under consideration, which together produce an overall score.
The five key indicators include: the average total rent for properties in the city; both long- and short-term returns through market-value returns and yields respectively; the percentage of each city’s population renting property; and property vacancies against available properties.
Against these criteria, Swindon managed a score of 56 – placing it above popular cultural centres York and Portsmouth and putting it one point shy of Glasgow. Manchester, London and Bristol topped the leader board with a score of 73, Manchester edging out over London thanks to higher yields and rental population.
Swindon’s Booming Property Market
Swindon’s relative success on the national leader board can be attributed to its development as a commuter alternative for professional populations in the south. While London’s rental market continues to stagnate, space remains a premium – and remains a premium cost.
For renters, Swindon has become a particularly alluring prospect. Its rental prices remain low in comparison to other areas in the South and South-West, while its commute times to London are equivalent to living in Zone 4 of London – thanks in large part to a high-speed rail connection.
Ancillary costs like landlord insurance become more affordable, and quality of life higher as a result. This demand is fuelling new developments in the area, pumping money into the local economy, and further driving interest, all the while expanding available space and creating new opportunities with significant headroom for yield. Swindon is on the rise as a whole, but are there any specific areas that might better serve your investment portfolio?
Buy-to-Let Hotspots
Looking at the property investment yield data for Swindon’s various regions does not produce any one clear victor for investment; each area has its own unique selling points, and provides its own opportunities for investors.
For example, the average annual rental yield for SN3, comprising Walcot East, Lawn, Coate and Covingham, is 4.5%. Meanwhile, areas of West Swindon enjoy yields between 3.8% and 4.9%. South and central Swindon both enjoy yields of 4.8% annually, making them – by the slimmest of margins – perhaps the better hotspots within which to stake your investment. By and large, though, the future is bright for Swindon, and any investment in this growing city is destined for success.
