It is also good to keep an eye on areas that show signs of regeneration, as these could offer better value and growth.
Choosing the right type of property is vital. Apartments in city centres are popular with young professionals and students, and they typically have lower maintenance costs and higher yields.
Houses are often better suited to family areas and may get you longer-term tenants and reduce the risk of void periods.
Some investors may even consider houses in multiple occupation for higher yields, but it is essential to consider the additional management and regulatory requirements they entail.
"The whole proposition needs to be kept in mind," Lay says. "How does the investment look once you've considered tax, insurance, the time commitment and potential void periods?"
The BTL dream has its merits but is certainly not a guaranteed path to wealth. And most crucially, it is not always as simple – or passive – as it seems.
For those considering it, ensure you are prepared for the glitter and the grit.
Kanishk Swarup is founder of Compound Wealth Planning
