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UK’s top 10 high yield buy-to-le...
UK’s top 10 high yield buy-to-let hotspots revealed
Leeds steels itself for a ‘landlord goldrush’ as it tops the list of postcodes where buy-to-let developers could turn a profit on rental properties. The buy-to-let interactive heatmap released today by TotallyMoney.com shows would-be property moguls an at-a-glance view of the potential yield from rental properties across more than 2,600 UK postcode districts.1
- **Leeds (LS6 postcode) delivers a table-topping 10.79% yield, closely followed by Bradford (BD1) and York (YO**1_) offering yields of 10.33% and 9.73% respectively;_
- Northern and Scottish investors have the best chances of realising a buy-to-let yield above the national average of 3.3%;
- The average 2.9% buy-to-let yield for London postcodes is lower than any other UK city.
- Sandbanks, the luxury peninsula in Poole that many football legends call home, has the lowest buy-to-let yield of any UK postcode.
The TotallyMoney.com Buy-to-let Yield Interactive Heatmap reveals the yield achievable in more than 2,682 postcode districts across England, Scotland and Wales, with data compiled from analysis of 441,777 properties on the market for sale or rent. Winners and losers Leeds (LS6) tops the table of the highest yielding places to invest in buy-to-let property with a yield of 10.79% and a decent pool of available properties.
Post town
Postcode
Median monthly rent
Median asking price
No. of properties for sale
Yield
Leeds
LS6
£1.044
£116,115
92
10.79%
Bradford
BS1
£552
£64,108
48
10.33%
York
YO1
£1,876
£231,399
32
9.73%
Preston
PR1
£952
£125,810
553
9.08%
Middlesbrough
TS1
£523
£69,368
76
9.05%
Liverpool
L7
£720
£99,114
108
8.72%
Manchester
M3
£1,230
£177,546
166
8.31%
Sheffield
S1
£823
£118,861
54
8.31%
Huddersfield
HD1
£656
£101,536
69
7.75%
Cardiff
CF24
£1,220
£192,548
130
7.60%
** Source: TotallyMoney.com analysis** While scraping along at the bottom of the table we find the BH13 postcode in Poole, with a buy-to-let yield of only 1.13%.
Post town
Postcode
Median monthly rent
Median asking price
No. of properties for sale
Yield
Bromley
BR2
£1,300
£788,293
195
1.98%
London
N21
£1,339
£825,700
141
1.95%
Northwood
HA6
£1,732
£1,103,645
106
1.88%
Birmingham
B15
£1,013
£656,412
91
1.85%
London
W8
£4,920
£3,320,116
266
1.78%
Reading
RG8
£1,225
£865,454
109
1.70%
London
N2
£3,764
£2,733,640
176
1.65%
Poole
BH14
£1,288
£1,000,795
195
1.54%
London
N6
£2,779
£2,418,305
146
1.38%
Poole
BH13
£1,574
£1,668,641
245
1.13%
Source: TotallyMoney.com analysis Geographical divide The study reveals a clear geographical divide between The North and The South with northern regions coming out on top and The South East showing particularly poorly. Nine out of the 10 highest yielding postcode districts are in Scotland and the North/Midlands regions. The 10 lowest yielding postcodes, with the exception of Edgbaston and Holland Park in Birmingham, are all in Greater London, the South East and the South Coast.
Area
Postcode
Median monthly rent
Median asking price
No. of properties for sale
Yield
Olympic District
E20
£2,632
£536,832
164
5.9%
East Ham
E6
£1,372
£343,046
226
4.8%
Thamesmead
SE28
£1,148
£292,140
88
4.7%
Plaistow
E13
£1,398
£365,169
163
4.6%
Manor Park
E12
£1,417
£396,374
126
4.3%
** Source: TotallyMoney.com analysis** Alastair Douglas, CEO of TotallyMoney.com, said of the findings: “Due to rapidly growing property prices, London is often seen as the best place to invest in property. However growth rate isn’t always mirrored in rent prices. “This research shows that investors looking for high yields on rental developments might see better returns from properties in the cities of northern England and Scotland.” 1 Rental yield is defined as median annual rent divided by median asking price. Data are based on analysis of 303,822 properties for sale and 137,955 properties for rent marketed online in September 2016.
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