University Cities Hotspots for High Rental Yields

 

rental yield

University Cities Hotspots for High Rental Yields

Landlords, we know how much you all love to learn about which areas are producing the highest rental yields, so we’re happy to announce that TotallyMoney has released data from its latest buy-to-let yields survey.

These results are useful for any buy-to-let landlord, eager to find the right area for property investment. Looking at such surveys provides helpful insight of the current potential within the UK. In particular, TotallyMoney’s data highlights certain university cities to be producing the highest yields.

This data took into account over 580,000 properties throughout England, Scotland and Wales, organising postcodes based on buy-to-let yields, in order to rank them from highest to lowest. Areas with high student populations, such as Nottingham, Liverpool, Manchester, Leeds and the North East, appear to be providing landlords with the most lucrative yields, within the UK.

Looking at Nottingham, there is a population of more than 37,000 students, the majority of which will be renting. With two Nottingham postcodes appearing in the top five of these results, it is a strong contender for landlords looking to invest. The NG1 postcode is at the top of the list, providing an average rental yield of 11,99%. NG7 has come fifth, providing an average yield of 8.89%.

Moving over to the West, Liverpool is second on the list, with seven postcodes achieving a place in the top 20. This city attracts around 70,000 students, across a total of three universities. Properties in the postcode L7 have the second highest average rental yield, at 9.79%. L1 sits at fourth place, showing an average yield of 9.33%.

Looking at locations that have not performed as well, London has unsurprisingly struggled, with five postcodes in the bottom ten of the overall list. The Highgate postcode of N6 in particular only shows an average buy-to-let yield of 1.93%.

TotallyMoney’s head of brand & marketing communications, Mark Moloney, said: “With students flocking to university cities year after year and looking for a place to live, it’s no surprise the student market is a dependable one for landlords.

“Since so many students are looking for accommodation, landlords may use this as an opportunity to drum up competition between them.

“But, due to the tenant fee ban, changes in mortgage tax relief, and tighter buy-to-let lending criteria, rental profits are now being squeezed more than ever. To maximise their returns, landlords need to be savvier — and that’s where our map and mortgage comparison tool can help.”

Rank Postcode Postcode Town Properties for Rent Average Monthly Rental Value Properties for Sale Average Asking Price Yield
1 NG1 Nottingham 44 £1,525 169 £152,631 11.99%
2 L7 Liverpool 149 £941 79 £115,398 9.79%
3 TS1 Cleveland 185 £543 96 £68,925 9.45%
4 L1 Liverpool 116 923 404 £118,754 9.33%
5 NG7 Nottingham 240 £1,187 168 £160,269 8.89%
6 NE6 North East 540 £834 216 £118,789 8.43%
7 NE1 North East 357 £1,095 157 £161,035 8.16%
8 S2 Sheffield 238 £853 117 £125,483 8.16%
9 SS1 Southend-on-Sea 100 £2,736 207 £409,233 8.02%
10 BD1 Bradford 153 £439 130 £65,889 8.00%
11 L6 Liverpool 181 £765 123 £116,995 7.85%
12 TS3 Cleveland 38 £431 75 £67,489 7.66%
13 L5 Liverpool 48 £668 122 £104,893 7.64%
14 SR1 Sunderland 117 £567 47 £90,347 7.53%
15 HD1 Huddersfield 171 £838 61 £134,246 7.49%
16 L3 Liverpool 208 £836 817 £134,803 7.44%
17 LS6 Leeds 799 £1,483 79 £239,505 7.43%
18 M14 Manchester 433 £1,265 95 £214,848 7.07%
19 DN31 Doncaster 39 £398 51 £68,301 6.99%
20 PR1 Preston 653 £845 606 £147,076 6.89%

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