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.”
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