Aldermore's Buy-to-Let City Tracker has identified Bristol as the prime city for investment in 2024. The analysis considered five key indicators influencing buy-to-let (BTL) desirability: average total rent, short-term returns through yield, long-term return via house price growth over the past decade, the proportion of vacancies in relation to total housing stock, and the percentage of the city population engaged in the rental market.

Bristol claimed the top spot this year due to promising rental prospects, a significant proportion of long-term private renters, and a low number of vacant properties.

Additionally, landlords were enticed by a 6.6% annual increase in returns. However, short-term yields in Bristol rested at 4.4%.

Manchester slipped one position this year, despite having a lower average rent per room (£461) and a lower proportion of vacancies (0.9%) compared to the national average of 1.2%. Long-term returns in Manchester remained attractive at +6.1%, accompanied by a robust market of available tenants (31%).

Southern English cities, including Brighton, London, and Reading, also presented positive prospects for landlords, featuring higher average rents per room and strong demand from renters.

For the first time in the five-year history of the City Tracker, a Scottish city, Glasgow, secured a place in the top ten, ranking eighth. Glasgow offers landlords a rental return of £471 and boasts one of the highest short-term returns at 8.6%, surpassing the national average of 5.5%.

Jon Cooper, Head of Mortgages at Aldermore, reflected on the challenges faced by landlords in the current economic climate: "Landlords have experienced an unprecedented year with rising interest rates, rising inflation, all while navigating their way through property legislation changes."

He emphasized the enduring demand for rental accommodation and the pivotal role landlords play in providing homes for those yet to enter the housing market or who prefer renting.

Cooper acknowledged the shift in the leadership board, noting a broader range of areas making it into the top 10 this year. He highlighted the diverse conditions and challenges within each region, urging landlords to conduct thorough research and collaborate with brokers to optimize property portfolios despite the evolving obstacles.