Where are the UK’s Highest Buy to Let Rent Yields?

There are many aspects to think about when you’re investing in a new buy to let property, and yield is often one of the top considerations for landlords; but where in the UK has the highest yields for buy to let landlords? Consultant Mortgage Broker, Narinder Gill, explains!

Now is an incredibly busy time in the property market; the pent-up demand from Brexit and lockdown, combined with the stamp duty holiday incentive has many landlords, both new and seasoned, looking to make profitable investments. 

Rental yield depends on the size of the investment you’ve made and the monthly rent that the property attracts. For this reason, some areas of the UK attract higher yields than others; usually, because they have low property prices but still attract high rents. 

Recent research from Rentround has revealed that the current highest yields in the UK are in Liverpool, with the number one position attracting an average yield of 9.9%! In fact, five Liverpool postcodes feature in the top 20 highest yield areas, and 13 out of the remaining 15 locations are from the Midlands and North of England. 

 

#

Postcode

City/Town

Average Asking Rent (per month)

Average Yield %

1

L7

Liverpool

859

9.9

2

BD1

Bradford

469

9.6

3

SR1

Sunderland

525

9.6

4

TS1

Middlesbrough

437

9.5

5

NE6

Newcastle

783

7.6

6

CF37

Pontypridd

789

7.6

7

L1

Liverpool

721

7.5

8

S1

Sheffield

696

7.4

9

L5

Liverpool

599

7.4

10

M14

Manchester

1,084

7.3

11

DN31

Grimsby

432

7.3

12

LS4

Leeds

1,075

7.3

13

M11

Greater Manchester

850

7.1

14

L2

Liverpool

757

6.9

15

S3

Sheffield

627

6.9

16

PR1

Preston

682

6.9

17

NG1

Nottingham

874

6.8

18

TS3

Middlesbrough

452

6.7

19

L15

Liverpool

786

6.7

20

IP27

Lakenheath

1,149

6.6


Some may find it surprising that London does not feature at all in the highest yield list given the high rental figures the Capital commands. In fact, it features heavily in the 20 lowest yield areas! While the average rent in London is more than twice that of the rest of the UK, it’s no secret that property prices are also considerably higher, meaning that greater initial investment is required to purchase them. The Rentround report shows that London postcodes occupy 18 of the top 20 areas with the highest average property values for the UK. Does this mean that investing in buy to let in London isn’t a good idea? Absolutely not! While property prices are higher on average, they generally increase faster than other parts of the UK, meaning that those property investors looking for fast capital growth usually do well purchasing buy to let property here. 

 

#

Postcode

City/Town

Average Asking Rent (per month)

Average Yield %

1

W1

London

2,698

1.6

2

SW7

London

2,996

1.7

3

RG10

Waltham Saint Lawrence

978

1.8

4

CM4

Ingatestone

944

1.8

5

SW3

London

2,654

1.9

6

HP9

Beaconsfield

1,664

1.9

7

SY13

Whitchurch

541

1.9

8

W8

London

2,820

2

9

OX13

Kingston Bagpuize

882

2

10

WC2

London

2,683

2.1

11

SW1

South London

2,595

2.1

12

HR9

Ross-on-Wye

627

2.1

13

N6

London

1,581

2.2

14

AL5

Harpenden

1,393

2.2

15

HR8

Ledbury

676

2.2

16

HR6

Leominster

544

2.2

17

NW8

London

2,453

2.3

18

SW10

London

2,352

2.3

19

W11

London

2,290

2.3

20

NW11

London

1,687

2.3


If you’re looking for low purchase prices, then the North East coast, including postcodes in Grimsby, Hull, Middlesbrough and Sunderland appear multiple times in the top 20 cheapest places to buy. 

If you’d like to discuss your investment plans and mortgage requirements, please do not hesitate to contact me, Narinder Gill, on 01732 471604 or email narinderg@mortgagesforbusiness.co.uk

Source: Rentround 

 

NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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