Over the foreseeable future, Buy-to-Let investor/landlords need to be particularly careful when selecting the location of property to let. 

Rising unemployment and continued uncertainty regarding the eurozone, makes buying property in certain, socially unstable regions dubious at best.  Unless your portfolio can carry higher risk property whilst you plan for significant capital growth, it is perhaps best for the less valiant to avoid those areas of unrest, at least for the moment.

Having said this, regions that have relied on manufacturing and public sector employment, but where job losses now present a higher concern for rental delinquency, might prove an astute investment area over the long-term due to contual fall in value. Repositioning of desirable areas has been seen many times over the decades throughout the UK's major Cities where property speculators take a punt. This was the case in the 70's and 80's for example, in the St Pauls area of Bristol.

But, for rental yield and stability, the more cautious investor/landlord might be wise to focus on popular, residential areas where there is good infrastructure, more stable employment and high demand for renting. 

Such regions might include the UK's major University Cities, where student demand is predicted to outstrip supply over the foreseeable future.

According to BTL specialist Assetz, demand for homes in the private rented sector will continue to grow strongly throughout this year, but may vary from region to region.

Stuart Law, CEO of Assetz, said: Now is not the time to take a punt on potentially up and coming'locations or those that are dependent on sectors which are at risk from high levels of unemployment ... The deepening eurozone crisis is far from over and it will no doubt continue to impact the property market here in the UK by limiting the amount banks are able to lend and stifling consumer confidence ... High levels of tenant demand and the lack of first time buyer finance will continue to underpin the market next year, with rent rises expected in the region of 5%, as increasing numbers of people turn to buy to let as a way to generate a decent income from their cash ... Buying in a strong location will help deliver a reliable rental income and a good supply of quality tenants, albeit alongside only modest capital growth for the time being.

What We Say ~ If you are more interested in income, look to Birmingham and the north as cheaper purchase prices means higher rental yield. If, capital growth is your prime motivator, look to London and the south east, remembering of course, that a similar property type to one in the north could cost you three or more times as much to buy in the first place. The south west of England seems to be a neutral territory at this time, neither excelling in rental yield nor capital growth by comparison to the other two regions however, the south west does seem to be a very popular region for families buying-to-live.

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