A new study by insurance firm CIA Landlords has analysed rental prices of properties across the UK to discover possible revenue lines for landlords.

CIA’s study revealed that renting out rooms on an individual basis is usually the most profitable option for landlords, with Kingston-upon-Hull ranking as the most profitable location of all. 

The average monthly rent of an entire three-bed property in Hull works out as £287 per room, while the average cost of renting a single room is over £400 more expensive – that is, £697 pcm. 

CIA says this means landlords could earn up to £1,230 more per month by renting out rooms on an individual basis, adding up to an additional £14,700 per year. 

Sunderland is the second most profitable location, with landlords able to earn an additional £9,612 per year by renting out individual rooms, followed by Nottingham where they can earn an extra £7,740 per year.

CIA reveals that landlords in London are better off renting out an entire property rather than individual rooms. 

The average monthly cost of renting a three-bed in the capital works out as £1,693 per room, whereas the average cost of renting a single room in a property is just £972 per month. This means landlords could earn on average an extra £2,163 per month by choosing to let their entire property. 

After London, the only other UK cities where renting out an entire property is the most profitable rental strategy for landlords are Edinburgh, Aberdeen and Manchester. 

Meanwhile Stoke-on-Trent is the cheapest city in the UK to rent a whole three-bed property: the average is £843 per month.

Landlords can see the full research here.