Northern Ireland's property market is a force to be reckoned with reveals survey

Three Northern Ireland cities have been named as 'best places to invest for a quick return' in a UK top 10 survey.

Coventry is the best city to buy rental property if you want the fastest return on investment (ROI), with it taking just over a year to return your deposit.

However Londonderry was third while Armagh and Newry were ranked joint eighth in a new study which revealed the top cities for the fastest return on investment in the UK housing market.The study conducted by Bonusetu.com, analysed current market data from Zoopla, Rightmove, and Propertypal to reveal the best place to buy a one-bedroom property for the fastest return on your investment.

This was done by comparing the average price of a one-bedroom property in all 76 UK cities and the Isle of Man to the average monthly rental income.The results showed that Coventry is the best city to invest in property because it will return your deposit faster than any other UK city. It would take you as little as 14.8 months to ultimately earn back the average deposit of £19.875 with its exceptional rental yield of 12.2%.The second-best place to invest in the UK if you’re looking for a fast ROI is Birmingham. It takes approximately 15.6 months for the 12.5% rent yield to return your initial deposit.Londonderry ranked third as one of the best places to invest for a quick return, with it only taking 17 months to recoup your initial deposit. An important metric for potential investors is that Londonderry has the lowest deposit amount of any area in this study, with a 15% deposit on the average one-bed property only costing £8.437.50.In joint eighth place are Armagh and Newry. The deposit for both cities is just over half that of Derby at £11,250, and it also boasts a rental yield above 8%. On top of that, it would only take 21.4 months to earn back your initial deposit.

The study also found that London and Chester took the longest to see a 15% return, with London having a return period of 201.2 months and Chester having a return period of 88.6 months.

Bonusetu.com also compared these figures to those of a three-bedroom property and discovered that a one-bed property will return a deposit 32.7% faster than a three-bedroom property.

The average three-bedroom property in the UK has a rent of £1,648, takes 55 months to earn back a 15% deposit, and has a rent yield of 3.86%.

The average one-bedroom property in the UK has a rent of £957.13, takes 37.6 months to earn back a 15% deposit, and has a rent yield of 5.75%.

Speaking on the findings, a spokesperson from Bonusetu.com, said: “This research highlights the importance of evaluating current market conditions when considering investing in the housing market. By analysing the live market data, we can provide valuable insights for motivated property investors who are looking to maximize their return on investment in 2023.”