Buy to Let Hotspots

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Hotspots over the UK will obviously change from place to place over the years.

Hotspots are not in highly populated rental areas as although this may at first seem the obvious place it really means that there is too much competition and therefore rents may have to be dropped to attract tenants.

Often the best buy is a two or three-bedroom property, though structurally sound requires modernisation. If the property is in a good area with a high level of owner- occupiers in the same street the £15,000 to £20,000 cost of refurbishment will be well spent. The area should have good travel links, schools, shops and local facilities.

A good quality refit will encourage the type of tenant that will not only look after the property but also possibly stay for a longer period of time. Many of the hotspots are in the North of England where property prices are lower and towns and cities are being redeveloped. Others include university cities, as student lets can be profitable and also South Wales.

Hotspots in London tend to be where there are green spaces and good leisure facilities generally close to but outside the inner city. The majority of tenants are young professionals who work locally in the service centre or in the city and who demand high quality fittings in the property.

South London is a popular area as it has the necessary infrastructure and the properties tend to be of a good size. Sometimes over a period of say 10 years there may not be a difference in a property that was in a hotspot at the time to that which was not.

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