The typical refurbished buy to let property in perfect condition costs 43 per cent more than one requiring renovation, but will be the better long-term investment.
That is the view of HSBC which has analysed the private rental sector in a bid to guide agents and landlords on what and where provides the best returns.
The bank's research shows that landlords who purchase a BTL property requiring no renovation receive an average yield of 5.4 per cent, which is one per cent more than those who purchase a property that requires extensive refurbishment.
Properties that are ready to move into achieve higher yields in six out of 10 UK cities analysed by the bank. The 10 were Liverpool, Leeds, Birmingham, Newcastle, Cardiff, Edinburgh, Norwich, Exeter, London and Brighton.
Only in Liverpool and Edinburgh was it more beneficial to buy a property that requires considerable refurbishment.
The HSBC survey also shows that the average rental income for a two-bedroom property in immaculate condition is £872 per month - an amazing 75 per cent more than the typical rental income achieved for lesser standard properties (£498).
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