Best yields in Manchester and Leeds in ‘hybrid working hotspots’
Manchester provides the best returns for property investors, with an average gross yield of 5.79% and a monthly rent of £1,316, analysis from mortgage lender Molo has found.
This was closely followed by Leeds and Birmingham, with yields of 5.71% and 5.28%.
Molo said these cities provide home-working residents with community and networking opportunities, such as the chance to frequent local coffee shops, co-working spaces, or residential communities that host events and gatherings.
Mark Michaelides, VP strategy at Molo, said: “It’s no surprise that the most popular spots for hybrid working in England offer some of the best returns for those looking to invest in rental properties. Urban areas offer the necessary amenities and infrastructure for efficient work.
“Landlords can boost rental income from hybrid workers by making home improvements like fibre optic broadband, extra storage, a dedicated office space, or energy efficiency upgrades.”
Hybrid workers typically have additional requirements when looking for a home to both live in and work from.
These requirements include a dedicated workspace in an additional room to help maintain a clear boundary between work and their personal life, high-speed internet, which is often more reliable in a city setting, and adequate storage space, meaning they might well opt for an extra bedroom or a larger property to accommodate their needs.
These requirements, when added together, mean investors could secure higher rental yields from properties purchased with hybrid workers in mind for tenancies.