Cash in on the UK’s buy-to-let hotspots

Find out where you could build the most profitable property portfolio

With bank’s savings rates so disappointingly low, now could be the time to move your money into the increasingly competitive rental market. If you can take advantage of the soaring demand for rented accommodation you could see a double-digit return on your investment if you know where to look. Use our interactive map to scour the UK and find the postcode areas that offer the best yields.

Yield

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The winning postcodes:

  Postcode Post Town Coverage Average Rent Average House Price Yield
1 LS6 Leeds Beckett Park, Burley, Headingley, Hyde Park, Meanwood, Woodhouse £1,044 £116,115 10.79%
2 BD1 Bradford Bradford City Centre, Little Germany, Goitside, Longlands £552 £64,108 10.33%
3 YO1 York City Centre £1,876 £231,388 9.73%
4 PR1 Preston City Centre, Avenham, Broadgate, Deepdale £952 £125,810 9.08%
5 TS1 Middlesbrough Town Centre £523 £69,368 9.05%
6 L7 Liverpool City Centre, Edge Hill, Fairfield, Kensington £720 £99,114 8.72%
7 M3 Manchester City Centre, Deansgate, Castlefield £1,230 £177,546 8.31%
8 S1 Sheffield Sheffield City Centre £823 £118,861 8.31%
9 HD1 Huddersfield Huddersfield Town Centre, Hillhouse, Lockwood, Marsh £656 £101,536 7.75%
10 CF24 Cardiff Cardiff South, Rumney & Trowbridge £1,220 £192,548 7.60%


... and the losing postcodes:

  Postcode Post Town Coverage Average Rent Average House Price Yield
867 BR2 Bromley Hayes, Shortlands, Bickley, Bromley Common, Keston £1,300 £788,293 1.98%
868 N21 London Winchmore Hill, Bush Hill, Grange Park £1,339 £825,700 1.95%
869 HA6 Northwood Northwood, Northwood Hills, Moor Park £1,732 £1,103,645 1.88%
870 B15 Birmingham Edgbaston, Lee Bank £1,013 £656,412 1.85%
871 W8 London Kensington, Holland Park £4,920 £3,320,116 1.78%
872 RG8 Reading Goring, Streatley, Pangbourne, Whitchurch-on-Thames £1,225 £865,454 1.70%
873 N2 London East Finchley, Fortis Green, Hampstead Garden Suburb £3,764 £2,733,640 1.65%
874 BH14 Poole Lower Parkstone, Lilliput, Penn Hill £1,288 £1,000,795 1.54%
875 N6 London Highgate, Hampstead Heath £2,779 £2,418,305 1.38%
876 BH13 Poole Canford Cliffs, Sandbanks, Branksome Park £1,574 £1,668,641 1.13%

About this calculator

Calculations

Yield

Buy-to-let yield is defined as average annual rent divided by average asking price. Data are based on an analysis of 137,955 rental properties and 303,822 properties marketed for sale online on 1st October 2016.

Criteria

Postcodes need have more than 30 properties for sale and 30 properties for rent to be included

Sources