Buy-to-Let Rental Yield Map 2017/2018

The recent interest rate rise, on top of the buy-to-let tax changes and lender checks that came into effect earlier in the year, have made it more important than ever to assess the profitability of property investments.

When the Bank of England raised the base rate to 0.5%, they added to the challenge faced by many landlords. Margins are being squeezed, but buy-to-let rental properties can still offer competitive private rental returns if you know where to look. We surveyed 500,000 properties across England, Scotland and Wales to find the areas that offer the highest buy to let yields; the hotspots that offer the best rental revenue you could make as a proportion of the price of the property.

So, whether you’re sizing up your first investment property or a seasoned landlord adding to an existing portfolio, use our map to help unlock the best rental yield.

Buy-to-let yield map

6%-100%
4.5%-5.99%
3%-4.49%
1.5%-2.99%
0%-1.49%


Lenders are tightening their buy to let mortgage acceptance criteria in response to changes in regulations. The stress test introduced by the Government in September 2017 has put additional pressure on investors applying for buy-to-let mortgages to finance their rental properties. Before getting a mortgage, borrowers will need to satisfy lenders that they can still afford to meet repayments across their full rental properties portfolio, even if their buy-to-let mortgage rates were to rise to 5.5%.

To understand how lenders are likely to view you, check your credit report. It’s totally free. You’ll see details of all your going back six years and get a clear picture of your credit rating and the offer that you could be accepted for. Armed with this information, your next stop should be our buy-to-let mortgage comparison tool – designed to help you find the best buy-to-let mortgages.

Hotspot highlights

University cities place strongly on the league table of buy-to-let hotspots. Students are reliable tenants and can give landlords the kind of stable rental income needed to realise a healthy return on their investment.

London and other lows

North-South divided

Scotland

Many Scottish postcodes didn’t make the cut due to a lack of data. Our calculations only take into consideration postcodes with more than 30 properties for sale and more than 30 properties available to rent. But where the data are available, there are some standout Scottish stories.

Wales

London

Top 25 Buy-to-Let Property Hotspots

Rank#
PostcodePC Postcode Town Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1 L7 Liverpool 177 £1,224 79 £116,259 12.63%
2 L6 Liverpool 217 £959 133 £108,898 10.57%
3 L15 Liverpool 227 £1,214 241 £141,566 10.29%
4 PL4 Plymouth 334 1,315 271 £155,437 10.15%
5 TS1 Cleveland 146 £541 81 £64,507 10.06%
6 PR1 Preston 431 £1,027 586 £122,695 10.04%
7 DY5 Dudley 53 £1,145 96 £143,527 9.57%
8 NG1 Nottingham 79 £1,258 125 £169,521 8.91%
9 BD1 Bradford 226 £478 82 £64,903 8.84%
10 L1 Kirkcaldy 105 £892 368 £124,254 8.61%
11 L3 Liverpool 167 £1,035 716 £146,712 8.47%
12 NE6 North East 425 £826 229 £117,863 8.41%
13 HD1 Huddersfield 127 £724 151 £104,394 8.32%
14 M6 Manchester 130 £1,035 94 £150,550 8.25%
15 LS6 Leeds 1128 £1,482 43 £217,154 8.19%
16 S2 Sheffield 238 £702 122 £104,376 8.07%
17 NE1 North East 308 £1,152 115 £172,225 8.02%
18 L5 Liverpool 45 £574 145 £86,245 7.99%
19 M14 Manchester 279 £1,335 78 £200,852 7.98%
20 SR1 Sunderland 107 £539 32 £82,125 7.87%
21 L8 Liverpool 169 £841 168 £135,323 7.45%
22 CF37 Cardiff 128 £844 209 £136,267 7.43%
23 G3 Glasgow 37 £1,178 30 £192,032 7.36%
24 AB11 Aberdeen 198 £762 31 £125,125 7.30%
25 NE2 North East 555 £1,250 118 £205,479 7.30%

The 25 Buy-to-Let Property Coldspots

Rank#
PostcodePC Postcode Town Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1036 NW7 London 171 £1,948 309 £1,010,503 2.31%
1037 SW8 London 576 £2,685 1185 £1,403,592 2.29%
1038 N20 London 90 £2,442 185 £1,284,812 2.28%
1039 BN3 Brighton 167 £1,665 313 £876,105 2.28%
1040 N10 London 200 £1,747 222 £923,278 2.27%
1041 NW5 London 184 £2,088 179 £1,111,065 2.25%
1042 HD9 Huddersfield 35 £679 222 £364,310 2.23%
1043 SO41 Southampton 47 £1,286 350 £695,635 2.21%
1044 HP23 Hemel Hempstead 35 £1,092 138 £593,300 2.20%
1045 EN6 Enfield 75 £1,304 320 £710,537 2.20%
1046 SL8 Slough 35 £1,425 52 £778,236 2.19%
1047 KT20 Kingston upon Thames 32 £1,702 189 £967,397 2.11%
1048 HA6 Harrow 129 £1,736 190 £987,810 2.10%
1049 GL53 Gloucester 40 £877 55 £516,842 2.03%
1050 LS18 Leeds 42 £512 45 £302,086 2.03%
1051 BR7 Bromley 31 £1,414 132 £854,160 1.98%
1052 B15 Birmingham 83 £963 75 £587,683 1.96%
1053 NW11 London 498 £2,456 282 £1,523,534 1.93%
1054 EX8 Exeter 38 £717 139 £448,774 1.91%
1055 SL1 Slough 381 £1,071 499 £674,362 1.90%
1056 BH14 Bournemouth 81 £1,293 229 £831,035 1.86%
1057 N6 London 172 £2,899 197 £1,971,822 1.76%
1058 B70 Birmingham 52 £633 82 £450,639 1.68%
1059 N2 London 230 £3,702 186 £2,994,317 1.48%
1060 BH13 Bournemouth 72 £1,714 202 £1,456,539 1.41%

Joe Gardiner, Head of Brand and Communications says:

"Realising a decent return on a buy-to-let rental property is becoming increasingly difficult. Property prices continue to rise steadily, albeit more slowly, and rule changes have made lenders more cautious."

“Prospective landlords need to go into property investment armed with the facts: they need to be on top of their credit report, compare the market for the best buy-to-let mortgage rates and focus on property investment in areas that can give them the highest yield."

“The buy-to-let hotspots postcode map pinpoints postcodes and gives landlords a solid steer towards the opportunities that university city student lets offer."

"And our free credit report, buy-to-let mortgage comparison tool, ultimate guide to buy-to-let mortgages and in-depth guide to maximising profits from buy-to-let investment complete a suite of invaluable tools for landlords."

Scotland – 10 Highest Yielding

Rank#
PostcodePC AreaArea Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1 G3 Glasgow 37 £1,178 30 £192,032 7.36%
2 AB11 Aberdeen 198 £762 31 £125,125 7.30%
3 G31 Glasgow 30 £642 49 £113,183 6.80%
4 DD4 Dundee 76 £471 38 £93,621 6.03%
5 PA1 Paisley 39 £458 108 £92,279 5.95%
6 EH6 Edinburgh 47 £969 90 £198,145 5.86%
7 AB24 Aberdeen 196 £689 54 £153,478 5.38%
8 DD3 Dundee 89 £449 42 £106,364 5.06%
9 AB25 Aberdeen 177 £664 37 £158,577 5.02%
10 KY8 Kirkcaldy 49 £461 208 £116,881 4.73%

Scotland – 10 Lowest Yielding

Rank#
PostcodePC AreaArea Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1 G12 Glasgow 70 £1,139 35 £378,197 3.61%
2 TD9 Galashiels 36 £348 176 £116,336 3.58%
3 KY12 Kirkcaldy 67 £532 168 £178,617 3.57%
4 EH10 Edinburgh 39 £1,122 47 £377,850 3.56%
5 FK2 Falkirk 38 £495 104 £179,216 3.31%
6 DD10 Dundee 32 £437 104 £159,843 3.28%
7 DD11 Dundee 40 £512 78 £204,127 3.00%
8 PH2 Perth 55 £521 144 £209,707 2.98%
9 EH4 Edinburgh 57 £1,236 68 £508,570 2.91%
10 DD8 Dundee 48 £517 56 £226,448 2.73%

Wales – 10 Highest Yielding

Rank#
PostcodePC AreaArea Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1 CF37 Cardiff 128 £844 209 £136,267 7.43%
2 SA1 Swansea 390 £794 358 £157,490 6.04%
3 CF10 Cardiff 174 £836 118 £182,654 5.49%
4 CF40 Cardiff 30 £449 156 £99,006 5.44%
5 CF63 Cardiff 31 £616 90 £137,624 5.37%
6 NP13 Newport 34 £388 125 £92,104 5.05%
7 SA5 Swansea 30 £514 180 £122,269 5.04%
8 CF11 Cardiff 105 £807 159 £201,650 4.80%
9 NP19 Newport 47 £613 149 £155,292 4.73%
10 CF24 Cardiff 705 £937 124 £246,898 4.55%

Wales – 10 Lowest Yielding

Rank#
PostcodePC AreaArea Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1 CF62 Cardiff 34 £640 172 £207,918 3.69%
2 NP20 Newport 85 £567 152 £185,714 3.66%
3 SA72 Swansea 30 £451 163 £159,256 3.39%
4 SA4 Swansea 39 £517 318 £189,852 3.26%
5 CF14 Cardiff 118 £824 155 £303,072 3.26%
6 CF5 Cardiff 35 £699 143 £276,374 3.03%
7 SA61 Swansea 41 £440 210 £177,563 2.97%
8 SA31 Swansea 57 £490 171 £200,358 2.93%
9 CF64 Cardiff 35 £848 135 £347,262 2.93%
10 SA3 Swansea 39 £1,004 312 £482,210 2.49%

London – 10 Highest Yielding

Rank#
PostcodePC AreaArea Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1 E20 Olympic Park 38 £3,002 30 £581,517 6.19%
2 E13 Plaistow 154 £1,556 191 £396,978 4.70%
3 E6 East Ham 244 £1,364 250 £352,673 4.64%
4 SE28 Thamesmead 72 £1,130 97 £294,520 4.60%
5 EC4 Fleet Street 69 £3,606 42 £981,928 4.40%
6 N18 Upper Emonton 78 £1,238 85 £340,203 4.36%
7 E15 Stratford 399 £1,624 318 £474,962 4.10%
8 SE7 Charlton 55 £1,510 57 £458,200 3.95%
9 NW9 The Hyde 438 £1,486 667 £456,623 3.90%
10 E12 Manor Park 93 £1,360 109 £421,418 3.87%

London – 10 Lowest Yielding

Rank#
PostcodePC AreaArea Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1 SE1 Southwark 939 £2,510 1156 £1,273,897 2.36%
2 N14 Southgate 213 £1,462 109 £758,112 2.31%
3 NW7 Mill Hill 171 £1,948 309 £1,010,503 2.31%
4 SW8 South Lambeth 576 £2,685 1185 £1,403,592 2.29%
5 N20 Whetstone 90 £2,442 185 £1,284,812 2.28%
6 N10 Muswell Hill 200 £1,747 222 £923,278 2.27%
7 NW5 Kentish Town 184 £2,088 179 £1,111,065 2.25%
8 NW11 Golders Green 498 £2,456 282 £1,523,534 1.93%
9 N6 Highgate 172 £2,899 197 £1,971,822 1.76%
10 N2 East Finchley 230 £3,702 186 £2,994,317 1.48%

Liverpool - 10 Highest Yielding

Rank#
Postcodes Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1L7177£1,22479£116,25912.63%
2L6217£959133£108,89810.57%
3L15227£1,214241£141,56610.29%
4L1105£892368£124,2548.61%
5L3167£1,035716£146,7128.47%
6L545£574145£86,2457.99%
7L8169£841168£135,3237.46%
8L1386£612310£110,0196.68%
9L4173£459280£85,5296.44%
10L20173£454265£88,2076.18%

Liverpool - 10 Lowest Yielding

Rank#
Postcodes Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1L3335£546101£113,8005.76%
2L1935£844125£199,7645.07%
3L9102£477197£114,4085.00%
4L2164£441156£115,3194.59%
5L17120£869198£231,7974.50%
6L3545£690181£191,5614.30%
7L3933£1,318185£370,2584.27%
8L1865£1,096191£347,5343.78%
9L2537£820176£288,4513.41%
10L2331£765220£283,3743.24%

About this calculator

Buy-to-let yield is defined as average annual rent divided by average asking price.

Data is based on an analysis of 191,229 rental properties and 328,523 properties marketed for sale online on 20 March 2017 (source: www.zoopla.co.uk).

Postcodes require more than 30 properties for sale and 30 properties for rent to be included. Postcode map data collated from Wikipedia.

UK average house price https://www.gov.uk/government/news/uk-house-price-index-hpi-for-june-2017