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A new tool has been produced by window furnishing firm, Thomas Sanderson, which calculates and displays the best rental yields by postcode for cities across the UK. Unsurprisingly, according to these calculations, Liverpool tops the scoreboard with an average yield of 14.99 per cent in the cities L6 postcode, while Manchester also presents average yields of up to 11. 25 per cent in the M14 area.

With focusing on rental yields being one of the most important property investment tips, it’s vital to pay attention to the best rental yields the UK has to offer. Here we explore the UK rental yield map in a little more detail and find out why Liverpool and Manchester remain the best UK cities to invest in.

Top Tips
TopTips

What are the best rental yields UK?

For the best rental yields in the UK, you need to look up North. Average yields in Liverpool reach around 5.05 per cent, while Manchester generates an average of 5.55 per cent – an average rental yield UK cities like London fail to achieve.

When you explore the entirety of the rental yield map for these two cities, however, percentages grow even higher. So what are the top performing postcodes in Liverpool and Manchester?

What are the best rental yields by postcode in Liverpool?

In Liverpool, there’s a wide range of high performing postcodes to choose from. These three, in particular, stand out from the rest.

Liverpool Buy To Let Investment Guide

L1 

The L1 postcode in Liverpool continues to stand out, with some of the highest rental yields the UK produces. According to recent calculations, this postcode boasts an average of 13.63 per cent, which is a colossal figure when compared to the entire UK rental yield map. Recent average yields for the L1 postcode came out at around 9.36%, which shows how quickly and dramatically Liverpool’s rental market is growing.

L3

Another Liverpool postcode which benefits from high yields is L3. This postcode’s rental yields currently stand at 11.59 per cent on average, up from the previous average of 7.3 per cent. Like L1, L3 is located within Liverpool city centre, benefiting from a high level of demand from people seeking rental properties.

L6

Last but certainly not least is the L6 postcode, which according to recent findings, presents an average rental yield of 14.99 per cent. This is the highest rental yield in the UK, outranking any other postcode.

What are the best rental yields by postcode in Manchester?

Manchester has a number of top performing postcodes to look out for, and these three are perfect for anyone looking to find a high average rental yield in the UK.

M14

The M14 postcode, home to the popular student area Fallowfield, generates average rental yields of 11.25 per cent. This figure is up from 10.1 per cent, which shows how Manchester is also evolving at a steady speed.

M13

Another popular Manchester area, the M13 postcode is a great investment spot for those seeking high rental yields. The average yields in this area are currently 7.27 per cent, offering attractive opportunities for buy to let.

M19  

M19, another prime student hotspot, currently presents some of Manchester’s highest yields at 9.5 per cent. This area benefits from student demand, which makes it ideal for Manchester student accommodation investment.

Manchester Property Investment Guide

Does the student market in Manchester and Liverpool contribute to high UK rental yields?

With a number of these high performing postcodes being popular areas for students, how much influence does this have on UK rental yields?

For the highest rental yields, UK student cities perform well

It’s evident that locations with high student numbers result in some of the highest rental yields in the UK. In Manchester, two of the top performing postcodes are common student spots, along with two of Liverpool’s top three postcodes – L1 and L3. With student accommodation being typically more affordable to purchase, and Liverpool and Manchester rental costs rising, these attractive yields are somewhat inevitable. It’s for this reason that student property investment makes a great opportunity, allowing investors to benefit from high returns and a lot of demand.

Student Property Investment Guide
Student Property Investment Guide

Demand is also high for residential rental properties

While student property investment is a good idea in these locations, there’s also plenty of demand for residential properties. Liverpool and Manchester are big business cities and attract a high volume of young professionals, many of whom are graduates who have chosen to remain in their city of study. Postcodes like L1 are extremely popular with young professional tenants who wish to be close to both their workplace and the hustle and bustle of the city centre. With demand continuing to grow in these cities due to more young people moving up North from London, it’s likely that these rental yields will carry on increasing at a rapid rate for many years to come.

Looking for your next investment opportunity in Liverpool or Manchester? 

If you’re interested in making an investment in one of these thriving cities, be sure to take a look at our range of opportunities. Here at RW Invest, we focus on the best rental yields by postcode, with buy to let developments such as One Baltic Square being located within a top investment hotspot and offering yields of 7 per cent for one year. If you want to find out more, contact us today to discover your perfect UK investment opportunity.

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