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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1% to 2%
2% to 3%
3% to 4%
4% to 5%
5% to 6%
6% to 100%

The winning cities:

  City Median Rent Median House Price Yield
1 Leeds £795 £137,500 6.94%
2 Salford £750 £142,950 6.30%
3 Glasgow £533 £105,000 6.09%
4 Manchester £702 £139,995 6.02%
5 Belfast £600 £119,950 6.00%
6 Dundee £542 £113,000 5.76%
7 Newcastle upon Tyne £598 £129,950 5.52%
8 Edinburgh £897 £195,000 5.52%
9 Canterbury £1,077 £240,000 5.39%
10 Portsmouth £839 £186,998 5.38%


... and the losing cities:

  City Median Rent Median House Price Yield
52 Lichfield £676 £227,475 3.57%
51 Chichester £897 £302,500 3.56%
52 Newport £520 £179,950 3.47%
53 Exeter £745 £259,950 3.44%
54 Hereford £542 £214,975 3.03%
55 Bath £995 £399,000 2.99%
56 Worcester £498 £199,995 2.99%
57 Winchester £1,300 £550,000 2.84%
58 Cambridge £1,148 £495,000 2.78%
59 St Albans £1,127 £542,500 2.49%

The winning postcodes:

  Postcode Post Town Coverage Median Rent Median House Price Yield
1 S1 Sheffield Sheffield City Centre £675 £69,995 11.57%
2 G21 Glasgow Balornock, Barmulloch, Cowlairs, Royston, Springburn, Sighthill £451 £59,998 9.02%
3 BD1 Bradford Bradford City Centre, Little Germany Goitside, Longlands £451 £60,000 9.02%
4 MK9 Milton Keynes Central Milton Keynes, Campbell Park £1,400 £188,975 8.89%
5 G2 Glasgow Blythswood Hill £826 £112,500 8.81%
6 SO17 Southampton Highfield, Portswood, St Denys, Swaythling £1,300 £181,000 8.62%
7 G44 Glasgow Cathcart, Croftfoot, King's Park, Muirend, Netherlee £524 £75,000 8.38%
8 B18 Birmingham Winson Green, Hockley £800 £116,000 8.28%
9 LS6 Leeds Beckett Park, Burley, Headingley, Hyde Park, Meanwood, Woodhouse £1,092 £159,950 8.19%
10 G40 Glasgow Bridgeton, Calton, Dalmarnock £486 £71,498 8.16%


... and the losing postcodes:

  Postcode Post Town Coverage Median Rent Median House Price Yield
1622 YO42 York Pocklington, Barmby Moor, Melbourne, Seaton Ross £533 £344,975 1.85%
1623 SG2 Stevenage South Stevenage, Walkern, Ardeley £451 £294,950 1.83%
1624 N6 London Highgate, Hampstead Heath £1,517 £999,950 1.82%
1625 SL0 Iver Iver, Iver Heath, Richings Park, Thorney £1,000 £672,475 1.78%
1626 AL5 St Albans Harpenden, Kinsbourne Green £1,248 £850,000 1.76%
1627 N2 London East Finchley, Fortis Green, Hampstead Garden Suburb £1,517 £1,035,000 1.76%/td>
1628 SW7 London South Kensington, Knightsbridge £3,163 £2,250,000 1.69%
1629 HP9 Beaconsfield Beaconsfield, Forty Green, Holtspur, Jordans, Knotty Green, Seer Green £2,002 £1,475,000 1.63%
1630 AL9 St Albans Hatfield, Brookmans Park, Essendon, North Mymms £1,255 £950,000 1.59%
1631 WD7 Watford Radlett, Shenley £1,600 £1,500,000 1.28%

About this calculator

Calculations

Yield

Buy-to-let yield is defined as median annual rent divided by median asking price. Data are based on an analysis of 238,798 rental properties and 558,799 properties marketed for sale online on 3rd August 2015.

Criteria

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

Sources