There are many things to consider when choosing where to invest in a buy-to-let property, but with the election approaching, we think we’ve spotted another trend that landlords should bear in mind – it is definitely worth avoiding areas that vote UKIP.
Our theory is backed up by numbers. HSBC have listed the fifty places with the highest concentration of private rental stock, and ranked them by rental yield – the annual return landlords make on their property.
Many of the areas with the worst rental yields are in London, where increases in property prices have outstripped the increase in rent. However, there are four towns in the bottom ten of HSBC’s list which lie outside London, and should sound familiar to politics wonks.
Ipswich. The most recent poll shows a 16% UKIP upswing in Ipswich since the last election, rocketing it to one of the highest UKIP supporting constituencies.
Norwich. It’s admittedly not a UKIP stronghold, but UKIP are polling 2% ahead of the Lib Dems who currently hold the seat in Norwich South.
Hastings. The seaside town has become a target seat for UKIP, with Farage even parachuting in Gogglebox’s Andrew Michael as candidate.
Thanet. UKIP leader Nigel Farage is standing in Thanet South and is the bookies’ favourite to take the seat. Thanet is the lowest area outside of London on HSBC’s list, with a rental yield of just 3.47%.
We’re not saying that there’s a direct link between having a fruitcake as your local MP and poor rental revenue, but these four purple-and-yellow-flagged citadels don’t set a very encouraging precedent. Our advice to would-be investors? Look elsewhere.