29 May 2017 – With so many bustling locations in the UK, it can be difficult to pinpoint where exactly you should invest your money. Cost, neighbourhood demographics, popularity… There are so many factors to consider before deciding on a property.

Following TripAdvisor’s 2017 Top 10 UK Destinations, released earlier this year, financial comparison site, finder.com/uk, has conducted research to find which of the UK’s most popular holiday hotspots fares best in terms of value for investors.

By analysing the yields for holiday destinations based on property sales and rent return figures, finder reveals that of the Top 10 hotspots,Liverpool offers the best value for property investment.

The maritime city ranked 5th on the list of top 10 most popular destinations, however, it recorded the highest investment yield of 6.62%.

Second on the list is Glasgow, with the Isle of Wight, Jersey, and Keswick completing the top five list of most desirable holiday destinations for property investors.

Analysis found that the most popular UK holiday destination, London, drops to 7th place with regards to return on investment.

Similarly, despite being the second most popular destination for holidaymakers, Edinburgh drops six places when investment value is factored in, while Bath remains at the bottom of both lists.

UK’s Top 10 holiday destinations ranked by best investment value

Source: finder.com, GOV.UK, gov.je, TripAdvisor, HomeLet

nb: different data set used for Jersey figures as it was not available from GOV.UK

CEO of finder UK, Jon Ostler, says: “When investing in property, it can be easy to assume that the most popular locations – in this case, London and Edinburgh – will offer the highest returns. However, our analysis reveals that by taking some time to compare locations and shop around, investing in slightly less-obvious locations may actually work out better for you financially in the long run.

“With the ranking based on destinations voted most popular by travellers, it’s likely that you’ll secure tenants in these hotspots in little time, regardless of which location you choose.

“If you are looking to invest, make sure you take some time to inspect and investigate. Determining overall value is beneficial, however, if the property requires renovation for example, the money you could save will go towards those fixes that tenants will expect to be completed. Photos can often be misleading, so it’s important that you see the property in the flesh first.”

CEO of finder UK, Jon Ostler, says: “When investing in property, it can be easy to assume that the most popular locations – in this case, London and Edinburgh – will offer the highest returns. However, our analysis reveals that by taking some time to compare locations and shop around, investing in slightly less-obvious locations may actually work out better for you financially in the long run.

“With the ranking based on destinations voted most popular by travellers, it’s likely that you’ll secure tenants in these hotspots in little time, regardless of which location you choose.

“If you are looking to invest, make sure you take some time to inspect and investigate. Determining overall value is beneficial, however, if the property requires renovation for example, the money you could save will go towards those fixes that tenants will expect to be completed. Photos can often be misleading, so it’s important that you see the property in the flesh first.”

Let’s take a closer look…

1. Liverpool

With an average dwelling price of £122,283, the second most inexpensive on the list, and average rent of £675 per month, Liverpool ranked first place for return on investment with a yield of 6.62%. Rich with historical pop-culture ties, linked to The Beatles, as well as a bustling community as the fifth largest urban area in the UK, investors should set their sights on this holidaymaker’s hot spot.

2. Glasgow

Scotland’s Glasgow might catch your eye if you’re looking for a popular location to invest in. It came in second, with the most inexpensive average dwelling price of £116,022, and an average monthly rent of £610, making the yield 6.31%. Not too shabby, investors! Acclaimed for its thriving cultural scene, a property in Glasgow allows its tenants to explore music, architecture, theatre and art.

3. Isle of Wight

Sitting in third place on our value for money list, this location might just be the ‘Wight’ one for you! Despite having one of the more expensive average dwelling rent prices of £997 per month, the average dwelling price comes in at £198,865, resulting in an attractive yield of 6.02%. A property in this hot spot would ensure much loved R&R with its beautiful coastal scenery.

4. Jersey

Despite being small, Jersey has much to offer, including great value for its investors. Ranking fourth on our investment value list, its average dwelling price sits at £159,900 with an average dwelling rent price of £798 per month, meaning the yield is a sweet, sweet 5.99%. With eye-catching natural scenery, tenants will feel as though every day is a holiday.

5. Keswick

With the third cheapest average dwelling price of £145,982 and a monthly average rent price of £675, investors will enjoy a yield of 5.55% when buying up in Keswick. If you’d like to call a scenic getaway home, then this is the place for you. Residents can enjoy lakeside views, as well as glorious mountain views. This location has a perfect balance of both relaxation and activities for fitness go-getters.

6. Windermere

Kicking off the second half of the list is Windermere, where investors can expect a yield of 5.38%. The average dwelling price as of March 2017 sits at £150,556, and an average rent price of £675 per month. Known for its scenic glory, residents can enjoy its lake views, explore nearby villages, or enjoy tasty seafood at local restaurants.

7. London

Not surprisingly, London came first on the list for top UK destinations. However, it fell six places when value was factored in. Investors will be looking at a yield of 3.93%, due to it having the most expensive average purchase price of £471,742 although it also holds the most expensive rent price of £1,546 per month. Despite this, due to its popularity, key attractions, and bustling culture, this is a place for everyone, meaning that finding tenants should likely be a breeze.

8. Edinburgh

The second most popular UK destination also fell six places when value was considered. If seeking to invest in Edinburgh, you’ll be looking at a yield of 3.22%, due to an average dwelling price of £227,597 and an average monthly rent price of £610. Rich with historical architecture, lush gardens, and attractive views, it’s obvious why this location ranked well by holidaymakers.

9. York

Ranking second last with value for money in the picture, York investors will be looking at a yield of 3.08%, due to the average rent price of £619 and the average dwelling price of £241,042. Its history makes it a popular choice among holidaymakers, with museums, galleries, and cathedrals abundant.

10. Bath

Last but not least on the list is Bath. With the second most expensive average dwelling price of £333,930, coupled with an average rent cost of£798 per month, it has earnt a yield of 2.87%. Despite ranking last in terms of investment, Bath flourishes with architecture, and links to literature, being the home of Jane Austen.

For more information on finder, please visit www.finder.com/uk