Best Buy-to-Let Areas in the UK for High Rental Yields 2026

Liverpool remains one of the UK’s strongest markets for rental performance, supported by a balance of affordability and solid demand. Several central postcodes, including L1, L3, L6 and L7, offer competitive yields thanks to a combination of achievable purchase prices and robust tenant demand.

• Competitive yields across central and inner-city postcodes
• Strong demand from students and graduates across multiple universities
• Achievable purchase prices compared to other major UK cities
• Major regeneration schemes in the Knowledge Quarter and Baltic Triangle
• Growing interest in city-centre and waterfront locations

The city continues to attract long-term interest as regeneration enhances its overall appeal. Investors reviewing this market often compare neighbourhoods undergoing redevelopment, and those assessing opportunities can explore Liverpool property investments to learn more about city-centre and waterfront options.

London continues to attract domestic and international investors, although yield performance varies significantly across the capital. Central zones typically offer lower gross yields due to high purchase prices, while more affordable outer districts such as Woolwich, Barking and Acton often demonstrate stronger returns.

• Lower gross yields in central zones due to high purchase prices
• Stronger returns in more affordable outer districts
• Resilient rental demand supported by a large employment base
• Continued demand from graduates and international tenants
• Regeneration projects and transport improvements across the capital
• Growing influence of build-to-rent developments

London’s rental demand remains resilient, with regeneration schemes, infrastructure investment and build-to-rent projects continuing to shape investment patterns into 2026. Buyers assessing the impact of taxes on purchasing decisions often begin with a stamp duty calculation to help compare London with regional markets.

Sheffield is characterised by affordability, rising rents and a sizeable student and graduate population. As one of the most accessible major cities for first-time investors, the city benefits from a growing number of employment opportunities across advanced manufacturing, engineering and digital sectors.

Key factors supporting Sheffield’s rental market include:

• Affordable entry prices compared to larger UK cities
• Rising rents supported by consistent tenant demand
• Large student and graduate population
• Growing employment opportunities in manufacturing, engineering and digital sectors
• Major regeneration schemes, including Heart of the City II
• Increasing appeal of central districts to young professionals

Major regeneration projects continue to enhance the appeal of central areas, attracting younger renters and supporting long-term rental demand. This ongoing focus on redevelopment and innovation makes property in Sheffield an appealing long-term market for yield-driven investors.

Wigan has emerged as one of Greater Manchester’s most affordable boroughs, with improving rental demand supported by strong commuter links to both Manchester and Liverpool. Ongoing town-centre regeneration is helping to modernise key districts and attract new residents.

• Affordable property prices compared to neighbouring markets
• Strong commuter links to Manchester and Liverpool
• Improving rental demand across the borough
• Extensive town-centre regeneration and redevelopment
• Attractive price-to-rent ratios supporting strong gross yields
• Early-stage market opportunities with long-term potential

As purchase prices remain comparatively low, Wigan continues to offer opportunities for investors seeking stronger yields. Areas benefitting from transport investment and redevelopment are increasingly attractive, making Wigan property investments a notable consideration for 2026.