PORTSMOUTH has been named as the 10th best buy-to-let hotspot in England.
Southampton topped the list compiled by HSBC of the best places for investors to put their cash.
Average property prices in Portsmouth are around £142,000, and average rents are £775 a month, meaning that the average rental yield that an investor can expect to make is around 6.55 per cent.
The rental yield on a property is the annual return that an investor can expect to make on it. It is worked out by calculating a year’s rental income as a percentage of how much the rental property cost in the first place.
With their relatively cheap property prices, northern towns and cities dominated the top of the list. Hull, with its large student population, came in third position and Manchester was in fourth place, with Liverpool and Nottingham also in the top ten.
There has recently been renewed interest in the buy-to-let sector, which has provided some decent returns at a time when savers are struggling to make any real money on their cash pots amid low interest rates.
Rents have soared in some regions over the last year amid strong demand in the rental sector and there have also been signs of lenders expanding their buy-to-let deals to meet the increased interest from investors.
Peter Dockar, HSBC’s head of mortgages at, said: ‘Buy-to-let remains a good investment for those looking for above-average returns, 23 of the top 50 areas offer yields above five per cent.’