x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

UK’s highest yields: the best postcodes for buy-to-let

Landlords currently looking for the UK’s best buy-to-let areas should consider locations with a high student population, with yields of up to 12% still achievable if you know where to look, according to new research.

A fresh survey by TotallyMoney provides both an interesting insight into the market and a useful tool for buy-to-let landlords, revealing that university cities offer some of the highest buy-to-let yields, making them potentially the most lucrative hotspots for landlords.

The research, which analysed more than 580,000 properties across England, Scotland, and Wales to rank postcodes in order of highest buy-to-let yields, to lowest, found that locations with a high student population, like Nottingham, Liverpool, Manchester, Leeds, and the North East, offer some of the UK’s highest rental yields.

Properties in Nottingham, which has a student population of over 37,000, appears to offer particularly good returns, with two postcodes featuring in the top five. NG1 takes first place with an average rental yield of 11.99%, and NG7 takes fifth place with an average yield of 8.89%.

Property prices are also affordable, averaging £152,631 and £160,269 respectively - far below the UK average of £226,906.

Liverpool ranks in second place, with two postcodes in the top five, and five postcodes in the top 20. It has an approximate student population of 70,000, as well as three universities, which is thought to contribute highly to its strong yields.

Postcode L7 takes second place and has average rental yields of 9.79%. L1 also performs well, taking fifth place, with average yields of 9.33%.

Newcastle’s NE6 takes sixth place, with an average rental yield of 8.43%. Property prices here are far below the UK average at £118,789, with Newcastle and Northumbria universities approximately 30 minutes away on public transport.

Similarly, Newcastle’s NE1 has yields of 8.16%, and is within walking distance to both universities. Property prices, however, are slightly higher at £161,035, but are still below the UK average

In stark contrast, London struggled to perform well compared with its UK counterparts.

North London in particular was a poor performer, with five postcodes in the bottom 10. Highgate in N6 was the worst postcode in the capital and third from bottom overall, with paltry yields of just 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%

Poll: Do you agree that areas with a high student population typically offer the highest rental yields?

PLACE YOUR VOTE BELOW

  • icon

    Glasgow's west end can generate yields of well over 10% since rents started to rocket following the SNP' s anti landlord (and thus anti tenant) legislation in December 2017.

icon

Please login to comment

valpal
submit
sign up