Where are the best regions for buy-to-let yields?
By |Published On: 13th February 2017|

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Where are the best regions for buy-to-let yields?

By |Published On: 13th February 2017|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

New research from property peer-to-peer lender Kuflink has looked at the average rental yield in 50 major UK towns and cities to determine where the best locations are for investors.

The data shows that properties in Manchester and Salford led the way, with typical yields of 6.7% and 6.6% respectively. Hull, Luton and Rotherham saw the most prominent increases in average rental yields during the final quarter of 2016.


Despite the large rents available in southern England, yields in the North are normally greater, reflecting the varying property values in the two regions.

Cambridge for example, gives an average rental yield of just 2.7%.

The top-ten towns and cities in the UK in terms of rental yields were found to be:

Town Region Average rental yield (%)
Manchester North West 6.73%
Salford North West 6.68%
Portsmouth South East 5.75%
Leeds Yorkshire 5.67%
Cardiff Wales 5.59%
Coventry West Midlands 5.37%
Southampton South West 5.19%
Nottingham East Midlands 4.90%
Birmingham West Midlands 4.73%
Stockport North West 4.65%

At the other end of the scale, the ten towns and cities with the lowest average rental yields were:

Town Region Average rental yield (%)
Cambridge East 2.73%
Chester North West 3.04%
Chelmsford East 3.07%
London South East 3.25%
Wolverhampton West Midlands 3.27%
Carlisle North West England 3.29%
Doncaster Yorkshire & the Humber 3.39%
Wakefield Yorkshire & the Humber 3.41%
Rotherham South Yorkshire 3.54%
Northampton East Midlands 3.57%
Where are the best regions for buy-to-let yields?

Where are the best regions for buy-to-let yields?

For rental yields, the top-ten towns and cities seeing an increase in average yields were:

Town Region Average rental yield (%) Dec 2016 Average rental yield change (%) Oct-Dec 2016
Hull Yorkshire & the Humber 3.78% 0.31%
Luton East 3.91% 0.30%
Rotherham South Yorkshire 3.54% 0.28%
Swansea Wales 4.14% 0.26%
Dudley West Midlands 3.72% 0.25%
Cambridge East 2.73% 0.23%
London South East 3.25% 0.23%
Aberdeenshire Scotland 4.31% 0.23%
Edinburgh Scotland 4.09% 0.22%
Doncaster Yorkshire & the Humber 3.39% 0.20%

Available Properties

In addition, the research shows that there are now fewer than 41,000 homes under £250,000 in the UK, down from 58,000 in October.

London has just 2,000 properties for sale under £250,000, with prices continuing to soar. Birmingham saw the largest drop in properties available under £250,000-showing a decrease of 1,373 homes between October and December 2016.

Tarlochan Garcha, CEO at Kuflink, noted: ‘The rift between north and south continues, but this time the attention is turning north. Buy-to-let properties in the North can be a steady investment, attracting renters who cannot afford to step onto the property ladder and therefore choose to rent in good locations, which are well-suited to their lifestyle.’[1]

‘Manchester and Leeds are both bustling cities, popular with young professionals and families, and can offer solid returns for landlords. While Birmingham, which has a growing business district and is soon to benefit from HS2, cutting journey time to London to just 49 minutes, is also firmly on the map as a strong buy-to-let spot,’ Garcha continued.[1]

Concluding, Garcha noted: ‘It could be time for landlords to turn their attention away from pricey London and look to the UK’s regional cities.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/britains-highest-yields-the-best-areas-for-buy-to-let

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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