TAKE CARE INVESTING IN HOUSES

LANDLORDS have had their income squeezed by a raft of tax hikes in recent years. But can you still make a decent return from investing in buy-to-let properties in retirement?

Experts say it could all depend on where in the country you choose to buy.

Stagnating house prices and political uncertainty has put an end to easy wins for ‘armchair landlords’.

But research suggests there are still good returns to be made in the North of England, where the rental market is strong but house prices remain relatively low.

Research by BM Solutions, Lloyds Bank’s buy- to- let lender, found the highest rental yield was in the North of England at 7 pc, followed by 6.4 pc in the North-West.

The lowest was in London at 4.4 pc and 4.9 pc in both the South East and South West.

Rental yield is the income you’ll get each year from rent as a percentage of the property purchase price. So if you bought a property for £150,000, a yield of 7 pc would be equal to £10,500.

A study by Property Partner, a crowdfunding investing website, found the top ten towns for buy-to-let yields are all in the North of England, with Stoke-on-Trent topping the list, followed by Leeds, Gateshead and Newcastle.