Leeds is one of the most profitable UK cities to invest in property after economy receives boost from Channel 4's arrival

Leeds is one of the most profitable UK cities to invest in property, according to a new study.

An annual ranking by CIA Landlord has revealed the true cost of being a landlord and the most profitable areas in the UK to invest in.

A spokesman said: "One of the main reasons people choose to become a landlord is through its opportunity to produce a passive income. If this is on your mind, it’s essential you select a location that can maximize your profits.

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"As part of the research, CIA Landlord looked at the best cities to become a landlord based on the average property price, mortgage amount, average rent from tenants, and the monthly costs of being a landlord to calculate monthly profit.

Leeds is one of the most profitable UK cities to invest in property, according to a new study.Leeds is one of the most profitable UK cities to invest in property, according to a new study.
Leeds is one of the most profitable UK cities to invest in property, according to a new study.

"While Brighton took the title of the best city to become a landlord for the last few years, it has been revealed that in 2022 London is the most profitable city to become a landlord. Here, landlords can expect to make an average monthly profit of £996.76. Newry, Bangor, and Brighton follow with £746.51, £603.01, and £544.76 average profit per month respectively."

Leeds is sixth in the table, with an average profit per month of £531.76, according to CIA Landlord.

The Leeds economy has received a number of significant boosts over the last year, which has helped to fuel demand for rented accommodation. The Leeds-based UK Infrastructure Bank was launched in July and Channel 4 recently moved to its new headquarters in the heart of the city.

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Launch of UK Infrastructure Bank and Channel 4’s arrival in Leeds were highlight...
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The statement from CIA Landlord added: "Our study also uncovers the true impact the COVID-19 pandemic has had on the capital’s housing market, identifying that the majority of London boroughs are unprofitable. The research reveals that London's profitability for landlords has increased slightly since January 2021 when just six out of 33 boroughs were profitable."

"Rising property prices and decreasing rental rates are squeezing profit margins for landlords, leaving 25 out of 33 London boroughs unprofitable in 2022, although this is a slight rise from our ranking last year which showed that just six boroughs were profitable."

In order to calculate the best city to become a landlord, CIA Landlord analysed every cost from maintenance and furnishing to letting agent fees, safety certificates, national insurance, licencing fees, tenancy deposit registration, and landlord insurance costs. This was combined with the average mortgage amount, rental rates, and property prices across 69 UK cities and 33 London boroughs to determine what were the best areas to become a landlord in 2022.