Barrow-in-Furness has been revealed among the best places for landlords looking to buy a fixer-upper, according to a new study by National Insulation Supplies.
The study, which used data from Gov.uk, the Office for National Statistics (ONS), and the Consumer Data Research Centre (CDRC), also named Blackpool and Burnley in the top three areas based on rental yield and the percentage of period properties.
Increasingly, prospective tenants are looking to rent quirky homes with original features. Sometimes, a new build just doesn’t cut it. This represents a fantastic opportunity for aspiring landlords hoping to stand out from the crowd.
With this in mind, National Insulation Supplies set out to find the best local authority areas for buying a fixer-upper to let.
The team of experts used the following factors to create an index, which was then used to rank local authority areas:
- Average rental yield (average house price, average rent per year)
- The percentage of dwellings built before 1940 (Defined as period properties)
Key Findings
Top Five Places To Buy A ‘Fixer-upper’ Property As A Landlord:
- Blackpool: Index score: 461, 6th for average rental yield (5.83%), 1st for percentage of dwellings built prior to 1940 (63.52%)
- Burnley: Index score: 458, 3rd for average rental yield (6.08%), 3rd for percentage of dwellings built prior to 1940 (58.57%)
- Barrow-in-Furness: Index score: 451, 7th for average rental yield (6.45%), 5th for percentage of dwellings built prior to 1940 (58.32%)
- Portsmouth: Index score: 446, 13th for average rental yield (5.62%), 2nd for percentage of dwellings built prior to 1940 (58.68%)
- Bristol: Index score: 432, 14th for average rental yield (5.53%), 7th for percentage of dwellings built prior to 1940 (54.54%)
Worst Five Places To Buy A ‘Fixer-upper’ Property As A Landlord:
- Wokingham: Index score: 42, 181st for average rental yield (3.58%), 195th for percentage of dwellings built prior to 1940 (14.77%)
- Hart: Index score: 43, 178th for average rental yield (3.61%), 196th for percentage of dwellings built prior to 1940 (14.35%)
- Tewkesbury: Index score: 44, 184th for average rental yield (3.55%), 188th for percentage of dwellings built prior to 1940 (18.21%)
- Broadland: Index score: 46, 196th for average rental yield (3.31%), 175th for percentage of dwellings built prior to 1940 (19.65%)
- Harborough: Index score: 50, 204th for average rental yield (2.98%), 175th for percentage of dwellings built prior to 1940 (22.22%)
Methodology
- We used house price data from the ONS to determine the average residential dwelling price in 208 local authorities across England.
- We used private rental data from the ONS to determine the average rental cost across 208 local authorities across England.
- We used these data points to determine the average rental yield. Each local authority was then assigned a number. The higher the rental yield, the higher the number.
- We used CDRC (Consumer Data Research Centre) data to determine the percentage of dwellings built before 1940 in 208 local authorities across England. Each local authority was then assigned a number. The higher the percentage, the higher the number.
- Finally, we combined the numbers achieved through rental yield ranking and dwelling age ranking to form an index score. The higher the number, the higher the local authority placed.
Below, Michael Wray, owner of National Insulation Supplies, lists easy(ish) fixes to make an older property more appealing to prospective renters:
Restore period features
“Increasingly, tenants prefer properties with quirky, unique features – which is why investing in an older fixer-upper is a fantastic idea. Try to restore original period features like mouldings, fireplaces and tiling. This is sure to add charm and character to your property, making it both memorable and appealing for prospective renters.”
Upgrade the kitchen and bathroom
“When viewing a property, renters typically pay close attention to the kitchen and the bathroom. Replacing cabinet hardware, installing a new backsplash and updating faucets and showerheads can make a world of difference.”
Try to improve energy efficiency
“Making a property more energy efficient may be expensive, but it’s sure to be an excellent long-term investment. For older properties, you’ll likely need to inspect the insulation, seal air leaks, upgrade HVAC systems and replace single old-pane windows with double or triple glazing. For a less intimidating project, invest in some energy-efficient appliances and swap lighting over to LED bulbs.”
How can I improve my insulation?
“In the UK, insulating lofts, roofs, floors, and walls significantly enhances the cost-effectiveness and energy efficiency of your home.
The most common method for loft insulation is using loft roll mineral wool insulation, also known as fibreglass insulation. Brands such as Knauf and Isover are great choices when insulating your loft.
In addition to this, the most popular method for insulating the rest of your home is PIR insulation. It’s cost-effective, and extremely versatile meaning it’s widely used in floors, walls, and roofs. Brands such as Celotex, Recticel, and Ecotherm are great choices.”
I hope this is useful to you – please feel free to publish any of this data or comments, crediting Michael Wray on behalf of National Insulation Supplies in the form of a backlink to the following webpage: www.nationalinsulationsupplies.com.
- Photo by OPPO Find X5 Pro on Unsplash
