Great Britain's buy-to-let hotspots 2017

Which areas give the best yield on buy-to-let mortgages?

Property is often viewed as a wise investment, however recent changes to the tax relief landlords of residential properties can claim have made the profit margins for mortgages much smaller. Use our interactive map to see which areas across Great Britain offer the best and worst yields for buy-to-let mortgages.

Buy-to-let yield map

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

The study found Liverpool to contain some of the best areas for buy-to-let investors with the central L7 postcode producing an average yield of 16.23%. This was far higher than London’s top postcode area, Newham - E13 - where the average yield was calculated to be 5.15% and the average asking price £350,000.

Overview

Scotland

Wales

Top 25 Buy-to-Let Property Hotspots

Rank#
PostcodePC Postcode Town Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
1 L7 Liverpool 232 £1,623 68 £120,026 16.23%
2 L6 Liverpool 281 £1,096 166 £95,612 13.76%
3 L15 Liverpool 320 £1,745 215 £158,709 13.19%
4 L1 Liverpool 144 £1,201 344 £115,286 12.50%
5 NE4 Newcastle Upon Tyne 493 £1,181 205 £113,401 12.50%
6 TS1 Middlesbrough 166 £608 90 £68,350 10.67%
7 HD1 Huddersfield 143 £962 68 £110,896 10.41%
8 L3 Liverpool 239 £1,308 460 £155,115 10.12%
9 LS2 Leeds 337 £1,024 20 £124,425 9.88%
10 S2 Sheffield 197 £834 85 £102,826 9.73%
11 BD1 Bradford 190 £489 92 £61,795 9.50%
12 LS4 Leeds 288 £901 11 £119,268 9.07%
13 M6 Manchester 171 £1,034 119 £140,367 8.84%
14 NE6 Newcastle Upon Tyne 1027 £868 272 £124,459 8.37%
15 PL4 Plymouth 368 £1,126 226 £162,854 8.30%
16 L5 Liverpool 53 £579 124 £84,895 8.18%
17 M14 Manchester 451 £1,227 62 £180,945 8.14%
18 L8 Liverpool 229 £904 176 £133,827 8.11%
19 EH8 Edinburgh 96 £1,408 31 £210,633 8.02%
20 G42 Glasgow 35 £499 59 £77,598 7.72%
21 LS6 Leeds 1591 £1,346 42 £211,817 7.63%
22 G51 Glasgow 32 £652 23 £102,911 7.60%
23 M5 Manchester 112 £967 124 £153,047 7.58%
24 LS9 Leeds 105 £618 111 £98,145 7.56%
25 G1 Glasgow 46 £858 26 £136,868 7.52%

The 25 Buy-to-Let Property Coldspots

Rank#
PostcodePC Postcode Town Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
967 TW12 Hampton 77 £1,343 188 £727,985 2.21%
968 DE4 Matlock 52 £605 231 £329,258 2.20%
969 SA3 Swansea 41 £788 325 £433,234 2.18%
970 N14 London 184 £1,402 111 £771,314 2.18%
971 N10 London 193 £1,605 157 £883,880 2.18%
972 WD7 Radlett 38 £2,755 64 £1,526,871 2.17%
973 BL7 Bolton 30 £723 131 £401,830 2.16%
974 SG13 Hertford 34 £1,271 96 £706,550 2.16%
975 BR2 Bromley, Keston 115 £1,234 187 £691,379 2.14%
976 NW7 London 214 £2,067 258 £1,159,457 2.14%
977 HP9 Beaconsfield 48 £2,176 46 £1,240,771 2.10%
978 WC1 London 341 £2,228 140 £1,271,687 2.10%
979 N20 London 112 £2,116 155 £1,215,181 2.09%
980 BH13 Poole 33 £2,525 207 £1,451,388 2.09%
981 LS18 Leeds 70 £459 31 £267,667 2.06%
982 W11 London 465 £3,010 225 £1,762,028 2.05%
983 W8 London 1613 £4,703 261 £2,779,870 2.03%
984 HA6 Northwood 155 £1,757 105 £1,057,783 1.99%
985 EN6 Potters Bar 58 £1,360 226 £822,909 1.98%
986 RG10 Reading 36 £1,183 53 £727,367 1.95%
987 CB9 Haverhill 34 £636 75 £401,803 1.90%
988 NW11 London 517 £2,284 321 £1,471,280 1.86%
989 N6 London 203 £2,678 184 £1,942,969 1.65%
990 N2 London 190 £3,861 169 £2,957,400 1.57%
991 BH14 Poole 42 £1,115 221 £954,032 1.40%

Joe Gardiner, Head of Brand and Communications at TotallyMoney.com, said:

Many people finance properties using a buy-to-let mortgage with the intention of boosting their income a little. The recent tax changes will move several landlords to a higher tax rate, making it harder to make money from investing in property in this way. While this may put off many potential landlords from getting a buy-to-let mortgage, the buy-to-let hotspots map can show them where their investment will bring the best yield.

Scotland – 10 Highest Yielding Postcodes

Rank#
PostcodePC Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
1 EH8 96 £1,408 31 £210,633 8.02%
2 G42 35 £499 59 £77,598 7.72%
3 G31 42 £615 68 £105,895 6.97%
4 G20 44 £808 33 £155,720 6.23%
5 DD4 154 £494 32 £96,248 6.16%
6 PA1 53 £449 87 £93,405 5.77%
7 EH6 66 £973 82 £204,522 5.71%
8 EH7 102 £1,094 76 £233,466 5.62%
9 EH12 36 £1,373 84 £296,090 5.56%
10 FK10 30 £538 113 £123,963 5.21%

Scotland – 10 Lowest Yielding Postcodes

Rank#
PostcodePC Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
1 EH11 82 £959 73 £292,870 3.93%
2 KY12 39 £489 159 £155,533 3.77%
3 G12 90 £1,101 39 £400,371 3.30%
4 PH1 82 £532 157 £196,540 3.25%
5 FK2 30 £478 101 £182,255 3.15%
6 PH2 73 £542 179 £207,006 3.14%
7 DD8 39 £498 56 £213,749 2.80%
8 G74 32 £484 92 £210,869 2.75%
9 EH4 46 £1,168 85 £526,085 2.66%
10 DD11 33 £465 51 £238,706 2.34%

Wales – 10 Highest Yielding Postcodes

Rank#
PostcodePC Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
1 CF10 130 £1,089 101 £176,750 7.39%
2 CF42 34 £443 110 £84,216 6.31%
3 SA1 505 £806 412 £156,527 6.18%
4 CF24 586 £1,252 117 £255,099 5.89%
5 CF37 147 £702 255 £144,580 5.83%
6 CH41 71 £498 93 £111,659 5.35%
7 CF11 164 £813 115 £182,554 5.34%
8 NP19 36 £610 213 £144,991 5.05%
9 CF23 74 £921 94 £221,451 4.99%
10 CF48 34 £535 257 £131,424 4.88%

Wales – 10 Lowest Yielding Postcodes

Rank#
PostcodePC Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
1 SA61 45 £475 213 £191,977 2.97%
2 SA31 79 £469 178 £190,743 2.95%
3 GL20 34 £851 147 £347,177 2.94%
4 GL52 77 £825 335 £344,349 2.87%
5 CH64 32 £766 170 £327,636 2.81%
6 CH43 48 £490 184 £217,919 2.70%
7 GL53 40 £1,166 73 £518,983 2.70%
8 GL7 90 £1,128 248 £512,163 2.64%
9 SA62 72 £512 582 £257,827 2.38%
10 SA3 41 £788 325 £433,234 2.18%

London – 10 Highest Yielding Postcodes

Rank#
PostcodePC Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
1 E13 115 £1,483 139 £345,470 5.15%
2 E6 160 £1,407 214 £353,851 4.77%
3 SE28 68 £1,126 81 £310,345 4.35%
4 E12 101 £1,360 87 £404,525 4.03%
5 E15 442 £1,552 313 £466,762 3.99%
6 N18 57 £1,182 81 £355,756 3.99%
7 E16 776 £1,674 982 £509,414 3.94%
8 EC4 84 £3,672 39 £1,127,089 3.91%
9 E10 166 £1,406 203 £448,098 3.77%
10 SE10 305 £1,756 352 £569,211 3.70%

London – 10 Lowest Yielding Postcodes

Rank#
PostcodePC Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
1 SE1 1121 £2,368 1062 £1,270,896 2.24%
2 N14 184 £1,402 111 £771,314 2.18%
3 N10 193 £1,605 157 £883,880 2.18%
4 NW7 214 £2,067 258 £1,159,457 2.14%
5 N20 112 £2,116 155 £1,215,181 2.09%
6 W11 465 £3,010 225 £1,762,028 2.05%
7 W8 1613 £4,703 261 £2,779,870 2.03%
8 NW11 517 £2,284 321 £1,471,280 1.86%
9 N6 203 £2,678 184 £1,942,969 1.65%
10 N2 190 £3,861 169 £2,957,400 1.57%

Liverpool – 10 Highest Yielding Postcodes

Rank#
PostcodePC Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
1 L7 232 £1,623 68 £120,026 16.23%
2 L6 281 £1,096 166 £95,612 13.76%
3 L15 320 £1,745 215 £158,709 13.19%
4 L1 144 £1,201 344 £115,286 12.50%
5 L3 239 £1,308 460 £155,115 10.12%
6 L5 53 £579 124 £84,895 8.18%
7 L8 229 £904 176 £133,827 8.11%
8 L2 56 £784 411 £131,247 7.17%
9 L11 46 £557 92 £98,353 6.80%
10 L33 45 £586 110 £106,775 6.59%

Liverpool – 10 Lowest Yielding Postcodes

Rank#
PostcodePC Properties for Rent Median Rental Value Properties for Sale Median Asking Price All BTL Yield
1 L4 192 £441 242 £82,168 6.44%
2 L20 162 £453 252 £89,512 6.07%
3 L13 98 £512 199 £107,916 5.69%
4 L18 87 £1,525 162 £329,127 5.56%
5 L17 158 £987 158 £239,044 4.95%
6 L21 53 £479 160 £117,889 4.88%
7 L9 75 £465 136 £124,156 4.49%
8 L35 44 £699 214 £187,980 4.46%
9 L36 30 £542 222 £154,645 4.21%
10 L19 56 £511 122 £205,732 2.98%

One Bed Properties

Top Three Postcodes

Postcode
Area Yield
LA14 Lancaster 13.82%
LS4 Leeds 10.47
LS1 Leeds 10.47

Bottom Three Postcodes

Postcode
Area Yield
SS1 Southend-on-Sea 2.36%
W8 London 2.43%
UB10 Uxbridge 2.46%

Two Bed Properties

Top Three Postcodes

Postcode
Area Yield
LS9 Lancaster 8.98%
TS1 Middlesbrough 8.95%
CV1 Coventry 8.69%

Bottom Three Postcodes

Postcode
Area Yield
SE1 London 2.37%
NW11 London 2.50%
EC1 London 2.80%

Three Bed Properties

Top Three Postcodes

Postcode
Area Yield
L6 Liverpool 11.09%
L15 Liverpool 8.73%
TS1 Middlesbrough 8.19%

Bottom Three Postcodes

Postcode
Area Yield
SE1 London 1.90%
SW8 London 2.12%
EC1 London 2.39%

Four Bed Properties

Top Three Postcodes

Postcode
Area Yield
PR1 Preston 7.48%
CF37 Cardiff 6.77%
CV3 Coventry 4.79%

Bottom Three Postcodes

Postcode
Area Yield
W2 London 2.28%
NW11 London 2.79%
NW8 London 2.75%

About this calculator

Calculations

Yield

Buy-to-let yield is defined as average annual rent divided by average asking price. Data is based on an analysis of 261,804 rental properties and 309,978 properties marketed for sale online on 20th March 2017.

Criteria

Postcodes require more than 30 properties for sale and 30 properties for rent to be included.

Sources

1. Average monthly rent, average asking prices and numbers of properties: www.zoopla.co.uk
2. Postcode map data: Collated from Wikipedia