An inventory company has listed what it claims are the five UK postcodes where buy to let players can generate the highest yields with an initial investment of below £100,000.
Inventory Base says the average rental yield in the UK is currently 4.3%, based on an average house price of £333,030 and an average monthly rental income of £1,206.
However, some postcode districts offer significantly higher yields, notably BD1 in Bradford. Here the average house price stands at £63,988 while the average monthly rent is £697. This results in an impressive average rental yield of 13.1%, the UK’s highest.
Leeds’ LS3 offers the second highest, at 12%, but initial investment required is far higher – £184,178.
Third is Sunderland’s SR1 with an average house price of £66,769 and an average rent of £611 pcm generating an average yield of 11%.
Aberdeen’s AB24 postcode has an average house price of £92,708 and rents of £710 per month, giving a yield of 9.2%.
The TS3 postcode district of Middlesbrough has an average house price of £90,528 and typical rent of £648 pcm bringing an average yield of 8.6%.
Finally, HU2 in Kingston-upon-Hull offers an average yield of 8.3% based on an average house price of £90,853 and an average rental income of £632 per month.
A spokesperson for Inventory Base says: “Buy-to-let landlords don’t need to invest huge amounts of money to benefit from a strong rate of return and in some areas, you can invest in three properties for the price of the average UK home and build an instant portfolio with very strong yields.”