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Here are the worst rental yield areas for buy-to-let

Landlords currently looking for significant rental returns will find that there are plenty of high yielding buy-to-let areas to choose from, but establishing where precisely can prove a minefield if you do not know where to look. 

Landlords that fail to focus on property investment in areas that can give them a high yield could very easily end up achieving a low return instead.

In an effort to help landlords, new research from rental platform, Bunk, has named the worst buy-to-let areas in the UK, based on rental yields, although this study does exclude prospects for capital growth.

On a national level, Wales is home to the lowest yields, at an average of 3.8%. This is followed by England, at an average of 4.2%. 

Northern Ireland and Scotland follow suit at 5.4% and 5.5 respectively. 

On a regional basis, the East of England offers the lowest average yield, at 3.6%, with the South East and South West not far behind at just 3.7%, and the East Midlands also slipping below the 4% mark.

Chiltern in Buckinghamshire is home to the lowest rental yield of just 2.8%, along with Monmouthshire.

South Bucks, Charnwood, Cotswold, Suffolk Coastal, Powys, North Norfolk, East Devon, Kensington and Chelsea and Rushcliffe offer a rental yield of just 3%.

Maldon, West Devon, Bromsgrove, Shepway, Purbeck, East Renfrewshire, Malvern Hills, Derbyshire Dales, and East Hampshire complete the top 20 areas offering the lowest average yields for landlords, with rental returns of 3.1%.

Tom Woollard, co-founder of Bunk, said: “Being in the buy-to-let space can be frightful for a lot of reasons but while many can live with often temporary issues such as a nightmare tenant, a poor return on your investment is perhaps the most blood-curdling situation a landlord can find themselves in.

“This Halloween, many buy-to-let investors will find themselves in the darkest spot they have been in some time.”

National - by worst rental yield

Region

Average Rental Yield (2019)

WALES

3.8%

ENGLAND

4.2%

NORTHERN IRELAND

5.4%

SCOTLAND

5.8%

Regional - by worst rental yield

Region

Average Rental Yield (2019)

EAST OF ENGLAND

3.6%

SOUTH EAST

3.7%

SOUTH WEST

3.7%

EAST MIDLANDS

3.9%

WEST MIDLANDS

4.2%

LONDON

4.4%

NORTH WEST

4.5%

YORKSHIRE AND THE HUMBER

4.5%

NORTH EAST

5.1%

Top 20 - Current worst UK rental yields

Location

Average Rental Yield (2019)

Chiltern

2.8%

Monmouthshire

2.8%

South Bucks

3.0%

Charnwood

3.0%

Cotswold

3.0%

Suffolk Coastal

3.0%

Powys

3.0%

North Norfolk

3.0%

East Devon

3.0%

Kensington and Chelsea

3.0%

Rushcliffe

3.0%

Maldon

3.1%

West Devon

3.1%

Bromsgrove

3.1%

Shepway

3.1%

Purbeck

3.1%

East Renfrewshire

3.1%

Malvern Hills

3.1%

Derbyshire Dales

3.1%

East Hampshire

3.1%

Sources

Average House Price       

Average Rental

England

Gov.uk

Scotland

Gov.scot

Wales

Gov.wales

Northern Ireland

Ulster University

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