With people commuting less due to the pandemic, it comes as no surprise that the interest in searches for ‘buy-to-let scheme’ has risen by 614.29% over the past year, according to research by Mashroom.

The letting management platform surveyed 1,000 tenants and landlords in the UK to find out how rental relations are faring in the current climate. It found the top hotspots for millennial landlords in the UK include London, Manchester and Birmingham.

Mashroom has taken a look at the average cost to buy a home in the millennial hotspot areas and compared it to the average monthly rent to uncover where younger investors will gain the most profit.

The table below shows the best places to opt for a buy-to-let scheme:

For the most profit per calendar month excluding any fees such as interest and/or insurance, Newcastle is the best place for a buy-to-let scheme, gaining a profit of £233.76 – a 5.25% increase compared to Liverpool and a huge 192.13% increase compared to London.

Mashroom estimates millennials who are investing in a buy-to-let scheme in London are losing around £253.83 a month and £27.07 a month in Edinburgh.

The survey found that the cities with the happiest tenants are London, Manchester and Birmingham – the top three hotspots for millennial landlords. Some 75% of tenants described relationships with their landlord as ‘good’ and ‘very good’, and 89% of landlords feel the same.

It poses the question: could millennial landlords be the reason tenants are beginning to build a more positive relationship with them?

Stepan Dobrovolskly, chief executive officer of Mashroom, says: “Tenants and landlords often see each other as enemies, but a lack of communication is usually the reason why relationships break down.”

“This could be because a letting agent or property manager is acting as the go-between but isn’t relaying the information correctly. When landlords and tenants communicate directly, the results are better – whether it’s arranging repairs or paying the rent on time.”