SOUTHAMPTON has emerged as the best place to invest in buy-to-let properties in the country, a report has revealed.

The city offers landlords the best potential returns while its south coast location and student population contribute towards its strong demand for rental properties.

Southampton also came third in the list of buy-to-let hotspots, research by HSBC revealed.

The report said Southampton offers the best overall potential financial yield for landlords in the country with 8.73% return of an average house price of £143,011.

This strong demand for rental properties is being driven by Southampton's position on the coast which is desirable for seasonal workers and holidaymakers as well as the local university student population, the report said.

Dan Salkeld, lettings manager at Goadsby Southampton said he has advised clients and investors about which areas of the city traditionally produce the best rental yields, how to present a rental property in order to minimise void periods, and attract the right tenants and achieve the highest rental to maximise yield.

He said: “This has resulted in great success and recently two of our investors saw their properties let upon first viewing.”


Top 10 best potential places to invest in a buy-to-let property overall, with the average house price followed by the average annual rent and the potential gross rental yield in 2014:

1. Southampton, £143,011, £12,480, 8.73%
2. Manchester, £104,244, £8,316 7.98%
3. Nottingham, £86,000, £6,600 7.67%
4. Blackpool, £77,899, £5,940, 7.63%
5. Hull, £68,243, £5,100 7.47%
6. Coventry, £110,029, £7,800, 7.09%
7. Oxford, £254,514, £17,868, 7.02%
8. Portsmouth, £146,709, £9,540, 6.5%
9. Liverpool, £91,175, £5,928, 6.5%
10. Cambridge, £185,414, £12,012, 6.48%