A new league table of rental yields available to landlords has been drawn up by PropTech company Inventory Base.
It’s examined government data for average house prices and rents, and it’s calculated that while rental yields have dipped across the UK by 0.41 per cent to 4.12 per cent – mostly thanks to rising capital values – there are still many cities returning strong yields.
These are mostly in the north of England and Scotland where house prices have shown less aggressive rises in recent months.
“This research confirms the national sentiment that northern cities are still some of the best for buy-to-let investment, and with four of Scotland’s cities making the top 10, Scotland is bound to be a buy-to-let hotspot for the foreseeable future” explains Warrick Swift, commercial director of InventoryBase.
“Though rental yields have been declining, this hasn’t had much of an impact on the appetite for property. Thanks to the stamp duty holiday and other economic factors, people are still battling it out to buy additional properties despite diminishing returns” he continues.
“The conclusion of initiatives like the stamp duty holiday having a negative effect on buy to let landlords is unlikely but it’s difficult to predict what the future holds for those interested in getting involved in the BTL industry in the coming months.”
City | Average Rent | Average House Prices | Estimated Rental Yield |
Glasgow | £793 | £126,600 | 7.52% |
Manchester | £800 | £185,000 | 5.19% |
Birmingham | £725 | £176,800 | 4.92% |
Sheffield | £600 | £147,000 | 4.90% |
Leeds | £725 | £178,600 | 4.87% |
Salford | £725 | £182,000 | 4.78% |
Edinburgh | £950 | £240,600 | 4.74% |
Liverpool | £500 | £129,800 | 4.62% |
Aberdeen | £545 | £144,200 | 4.54% |
Dundee | £650 | £179,300 | 4.35% |
