x
By using this website, you agree to our use of cookies to enhance your experience.

OTHER FEATURES

Top 10 Areas With Greatest Buy To Let Yields

A new study has revealed the top 10 UK areas with the greatest rental yield making them ideal for a buy-to-let.

Confused.com has analysed the average rental income by the average house price of different areas in the UK to reveal the areas with the highest rental yield. 

Areas in the UK with the greatest rental yield: 

Advertisement

Rank

Local authority

Average rental yield

Average house price

Average rent

1

Glasgow

5.65%

£196,618

£750

2

Aberdeen

5.47%

£142,777

£617

3

Clackmannanshire

5.31%

£139,551

£636

4

Falkirk

5.31%

£345,574

£1,295

5

Midlothian

5.26%

£168,415

£793

6

Dundee

5.19%

£226,844

£900

7

Burnley

5.15%

£163,327

£617

8

West Dunbartonshire

5.09%

£173,049

£625

9

Hyndburn

5.03%

£131,384

£550

10

Blackpool

5.02%

£188,750

£725

The area in the UK with the greatest rental yield is Glasgow at 5.65%. Rental yield is the most crucial factor to consider when buying a buy-to-let property. It refers to the rental income as a percentage of the purchase price. In Scotland’s biggest city, the average property price is £168,415, with an average rent of £793, for a yield of 5.56%. Compared to other major UK cities, property in Glasgow is relatively affordable, and rental demand remains strong partly due to a large student population.

The second area with the highest rental yield is Aberdeen, with average house prices of £142,777 and an average rental income of £617, which gives the area a rental yield of 5.47%. 

Third on the list is Clackmannanshire, with average house prices of £139,551 and an average rent income of £636, giving a rental yield of 5.31%. 

The areas in the UK with the lowest rental yield:

Rank

Local authority

Average rental yield

Average house price

Average rent

1

East Renfrewshire

2.09%

£293,102

£511

2

West Northamptonshire

2.13%

£295,459

£525

3

Monmouthshire

2.15%

£367,223

£657

4

Ceredigion

2.29%

£247,368

£472

5

Powys

2.30%

£239,130

£459

 

The area in the UK with the lowest rental yield is East Renfrewshire at just 2.09%. With average house prices of £293,102 and an average rent of £511. 

This research is one of the factors assessed in Confused.com’s study into the best places to rent out property in the UK. Overall the study found that Newcastle upon Tyne was the best area to rent out property. 

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • icon

    Yes might be true, but nobody's going to buy to let in Scotland are they? Scotland is a lovely place but the rules and regulations are far too anti-landlord.

    Simon Scholes

    Which is likely to be one of the main influence on good yields. Well done the Scottish Party.

     
  • icon

    You can get a higher % with a good savings account with no risk, stress or work.

    Simon Scholes

    But you do miss out on a lovely chunk of capital growth.

     
    icon

    Yes, that is the other factor, especially if leveraged.

     
  • Peter England

    Working with PaTMa Property Prospector
    Much research goes into finding the right property investment.


    PaTMa Property Prospector, works perfectly with Rightmove, that gave us exactly what we needed, and has significantly speeded up our research process."
    Whilst searching on price history, estimated rent, yield and ROI are right in front of you and nicely presented.
    One click drills down to show how the figures have been calculated, which is an important sanity check.
    I particularly like the heat map, which shows all the properties in the area, but when you zoom in it shows the yield brackets, such as 0 – 3%, 3%-5%. This allows us to identify properties closer to 10% yield which are the most attractive for our clients. To have this level of data at our fingertips frees up hours."
    Extra information also displayed as you search, such as if a property has returned to the market after several months is significant too and especially handy for when entering the negotiation stage.

  • icon

    I’m in the south east , I get 10% and 16% yield respectively, depends on when you bought

    icon

    I think you really need to work yields out on present day values, most of my properties were bought out of auction 25-30 yrs ago so working on purchase price my yields are through the roof

     
  • David Irwin

    Such an unprofessional and sloppy article to omit one whole region of the United Kingdom which is experiencing quite staggering demands for a limited supply of rental property. Northern Ireland.

icon

Please login to comment

MovePal MovePal MovePal