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Unlikely location heads landlords’ capital growth league table

An unlikely location heads the latest league table purporting to show the highest returns on property investment.

Aldermore’s Buy To let City Tracker names Southend as offering the strongest property investment returns in the past decade.

It says that with robust house price growth year-on-year, Southend saw the biggest average annual increase in house price of all 50 cities featured, with an average annual rise of 5.9 per cent compared to the national average of 4.4 per cent. It adds that this means the average property increased by £16,123 every year for the last 10 years.


Meanwhile, Luton also saw average annual house price growth of 5.9 per cent, while Bristol property owners saw an increase of 5.7 per cent.

But it admits that landlords may be unhappy because when it comes to short-term yields, these three cities performed notably worse, offering yields between 4.0 and 4.9 per cent.

Aldermore’s Tracker comprises of five core indicators: average rent per room per month, short-term yield for a new buy-to-let purchase, average property price rise over the last 10 years, proportion of vacant properties in the city and size of the private rental market. The index uses sources including the ONS, Census and other official housing statistics.

The top 10 cities for long term property returns in the last year are dotted across the country, with representation from several major regions. There’s a strong showing of five in the East (Southend, Luton, Cambridge, Basildon and Chelmsford), two in the East Midlands (Nottingham and Leicester), as well as one apiece in the North West (Manchester), South West (Bristol) and South East (Milton Keynes).

At the other end of the table, two Scottish cities featured in the bottom five for long term property returns, with Aberdeen (50) ranked as the worst city for the second year in a row, followed by Dundee (49). Rounding out the bottom five were two cities in the North East: Sunderland (48) and Newcastle (47) as well as Bradford (46) in Yorkshire.

Jon Cooper, head of mortgages at Aldermore, comments: “Over the past year, the housing market has seen major shifts that have affected people across the board, whether you’re a landlord, renter or homeowner. When combined with cost of living pressures and rising energy prices, landlords are naturally being forced to re-evaluate their portfolios. We recommend that all landlords work closely with their brokers to identify where the best returns are for their investments in 2023.” 

Rankning City Region Overall Score 2021 Ranking
1 Manchester North West 73 Bristol
2 London London 73  Oxford
3 Bristol South West 73 Cambridge
4 Cambridge  East 68 Manchester
5 Peterborough East  67  Luton
6 Milton Keynes South East 66 London
7 Luton East 64 Northampton
8 Reading South East 64 Brighton
9 Southend East 63 Reading
10 Coventry West Midlands 63 Norwich
11 Oxford South East  61 Southend 
12 Basildon East 61 Coventry
13 Norwich East 60 Edinburgh
14 Brighton South East 59 Swindon
15 Nottingham East Midlands 59 Leicester
16 Birmingham West Midlands  57 Peterborough
17 Glasgow Scotland 57 Basildon
18 Southampton South East  56 Portsmouth
19 Swindon South West  56 Southampton
20 Chelmsford East  56  Glasgow
21 Edinburgh Scotland 54 Plymouth
22 York Yorkshire 54 Derby
23 Portsmouth South East 52 Chelmsford
24 Northampton  East Midlands 52 Birmingham 
25 Maidstone South East  51 Bournemouth
26 Plymouth South West  51 Nottingham 
27 Telford West Midlands  51 Telford
28 Leicester East Midlands 50 York
29 Bournemouth  South West  49 Hull
30 Liverpool North West 49 Wigan 
31 Stoke  West Midlands 48 Maidstone 
32 Derby  East Midlands 47 Stoke 
33 Wigan  North West 47 Liverpool
34 Hull Yorkshire 45 Milton Keynes
35 Wakefield Yorkshire 45 Newcastle 
36 Barnsley  Yorkshire  42  Cardiff
37 Newcastle  North East  41 Barnsley
38 Warrington North West  40 Bradford
39 Leeds Yorkshire 39  Aberdeen
40 Belfast North Ireland  38 Warrington
41 Doncaster Yorkshire 37 Dundee
42 Dundee  Scotland 35 Leeds
43 Cardiff  Wales 34 Belfast
44 Aberdeen Scotland  33 Wolverhampton
45 Bradford Yorkshire  31 Wakefield
46 Wolverhampton West Midlands  30  Sheffield
47 Sheffield  Yorkshire 30 Doncaster 
48 Sunderland  North East  30 Sunderland
49 Newport  Wales  21  Newport
50 Swansea Wales  15 Swansea 


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  • icon

    If investors knew about Mayor Burnham’s plans and Manchester council’s attitude to landlords they might reconsider.

  • George Dawes

    Always thought Cricklewood had untapped virtually limitless potential , The Goodies certainly agreed


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