The estate and letting agency group Lomond researched the top 10 areas with the highest rental yields for British buy-to-let investors. They analysed recent data on property values and rents across all postcodes in Britain. This revealed which areas offer the best rental returns for investors. The average rental yield across Britain is now 4.5%, up from 4% last year.
According to the study, Scotland boasts the highest average rental yield among regions, standing at 5.4%. Following closely behind are the North East at 4.8% and the North West at 4.6% — the top two regions in England. On the other hand, the South East currently holds the lowest average rental yield at 3.8%.
These figures follow the most recent Zoopla data on rental yields, which showed similar results, with the top 10 areas for rental yields being dominated by Northern cities and towns.
The North West was particularly well-represented in those rankings.
Three towns or cities in the North West sit in the top ten for rental yields. This isn’t unexpected for those who track yield changes, as Burnley (8.00%), Blackburn (7.52%), and Liverpool (7.44%) were all in the top ten in the last update. Blackpool, Preston, Birkenhead, Wigan, Manchester, and Warrington are featured further down the list.
Find Out More: Learn about the direct costs of a buy-to-let property with one of our helpful guides. Additionally, you may want to check out our article on the positives and the risks of off-plan property investing.
