Reading and Brighton are becoming the fastest growing buy-to-let hotspots

in the UK, as young professionals are increasingly moving out of London, according to HSBC.

Rental returns are growing at the fastest rate in the two cities, with yields now respectively 12.8% and 12.6% higher than last year.

Average yields in Reading now stand at 5.48%, up from 4.86% last year, while in Brighton average yields now stand at 6.17% up from 5.68%. The average Reading property is currently priced at £207,934 while in Brighton average prices currently stand at £242,535. Average monthly rents are now £950 in Reading and £1,248 in Brighton.

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Peter Dockar, head of mortgages at HSBC commented: "Landlords are reaping the benefit as young professionals say goodbye to capital living in favour of more affordable commuter towns. Despite the inevitable increase in commuter costs associated with moving further out, many still feel the move is worthwhile in order to save towards property deposits.

"House prices in these locations – while still out of reach among many first time buyers – are relatively affordable for landlords investing in property and the demand from young professionals has pushed up rents and driven up the returns."

(IT)