Every landlord is looking to purchase rental properties that are a low-risk, high-yield investment and one of the ways to achieve these ideal characteristics is by purchasing homes in secondary towns and cities.
Data from Paragon Bank suggests that many buy to let landlords are increasingly targeting smaller, secondary towns and cities as opposed to big urban centres.
In fact, bar London and Manchester, the top 10 highest growth locations in urban completions were in secondary towns and cities and Nottingham is included in these statistics.
Other urban locations in the top 10 included Plymouth, Stoke, Northampton, Cardiff and Luton.
Paragon Bank director of mortgage Richard Rowntree commented: “Landlord demand for city and town centre property was strong in 2021, with Paragon’s analysis showing completions for house purchase increasing by 100%compared to the previous year.
| Location | % Change (2021 vs 2020) |
| Milton Keynes | 667% |
| Bristol | 300% |
| Manchester | 300% |
| Luton | 258% |
| Plymouth | 183% |
| Stoke | 157% |
| Northampton | 133% |
| London | 95% |
| Cardiff | 70% |
| Nottingham | 64% |
Why are landlords choosing to go for smaller cities?
Each of the locales featured in the table above appears to share at least one of the following essential elements:
- They are all within commuting distance of a large city
Commuter towns have become an increasingly desirable proposition for both investors and property investment businesses due to drastically cheaper living costs. Many of the smaller cities mentioned on this list are commutable to larger cities.
For example, Nottingham > Birmingham and Stoke > Manchester.
- They have thriving universities
Universities have a moral and ethical obligation to contribute to their communities’ quality of life. They are frequently the city’s major employers. They are a magnet for enterprises and highly qualified individuals.
- They have strong local economies
The term “local economy” refers to the economic and social structures that exist inside a given locality. Many diverse sectors and industries may contribute to local wealth creation, opportunity, and prosperity when local economies are strong.
All of the above factors are huge influences when it comes to properties that are attractive to tenants.
Why Nottingham is a great choice for buy-to-let Landlords
Nottingham and the surrounding towns have something for everyone. With a host of international companies, two universities, acres of beautiful countryside, excellent leisure and shopping facilities and a rich colourful history, this dynamic county is the perfect place to make your home. The central location and excellent communications network means Nottinghamshire is readily accessible from any part of the country.
In Summary
To conclude, it is clear that Landlords have been adapting to shifting tenant demand, and there is a strong need for renters who want to stay in an urban area, only in smaller towns and cities.
The statistics show that Nottingham continues to be a great place to purchase a property with buy-to-let intentions.
Wanting to become a buy-to-let landlord, or perhaps add to your existing portfolio? Take a look at our specific Nottingham housing market insights to help inform your decision or contact a member of our friendly team today.
