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Two Bed Properties Make Best Buy To Let Investments

Two bed properties are the best buy to let investment to make, according to research by lettings management platform, Howsy.

They looked at current rental yields across one bed, two bed, three bed and four bed+ properties based on the average cost of buying each property type and the average rent they command.

The research shows that across England, two bed properties make by far the best investment option with the average yield at 4.8 per cent compared to 4.1 per cent for a one bed, 4.5 per cent for a three bed and 3.6 per cent for properties with four or more bedrooms.

It also seems that investing in two bed properties up north is a better bet to maximise those rental yields with the North East seeing the highest average yields for a two bed at 5.5 per cent.

The North West is the next best option with the average rental yield for a two bed at 5.3 per cent, followed by Yorkshire and the Humber (5.2 per cent) and the East and West Midlands at 5.1 per cent and 5 per cent respectively.

The average rental yield for two bed properties in the capital currently sits at 4.5 per cent, but interestingly, London is the only region where a two bed doesn’t offer the best yields across all room sizes. This title is reserved for the lowly one bed where rental yields on this property size hit 4.6 per cent.

If you’re in the market for a three bed, then the North West is the most lucrative region with yields at 4.9 per cent, while Yorkshire and the Humber is your best bet for a four bed or above with an average rental yield of 4.3 per cent.

Founder and CEO of Howsy, Calum Brannan, commented: ‘As a landlord, maximising the profitability of your buy to let investment is as vital now as its ever been and property size and type are as important as location when it comes to doing so.

‘While the two bed property is traditionally the most popular amongst tenants and landlords due to the additional size without going overboard on costs, there is a slight regional variation in the capital.

‘This is of course, due to the high rents you can secure in London even on a one bed and the overwhelming demand for properties that have seen even the smallest ‘studio flats’ rent for above average prices.’

Source: Residential Landlord