Manchester Tops Rental Yield Rankings: A Buy-to-Let Opportunity You Can't Ignore

Manchester Leads the UK for Rental Yields in 2025
The latest data confirms what savvy property investors already know—Manchester remains the standout location for high rental yields in England and Wales. According to new research by Cohab, Manchester landlords are enjoying average annual returns of 6.35%, putting the city firmly at the top of the buy-to-let leaderboard.

Strong Performance Across England and Wales
Merthyr Tydfil in Wales came in second with 6.28%, closely followed by Portsmouth at 6.21%. These regions continue to offer compelling returns, especially for investors prioritising rental income and sustainable growth.

London Yields Catching Up Fast
While London doesn’t yet rival Manchester’s top yields, several prime areas in the capital are seeing significant improvements. The City of Westminster saw a 1.36% increase in yields year-on-year to 4.38%, while Kensington and Chelsea saw yields rise to 3.88%.

Other standout London boroughs showing notable annual improvements include:

• Islington: +0.74%
• Hammersmith and Fulham: +0.73%
• Brent: +0.71%
• Hackney: +0.66%

Wales Shows Promising Growth
Wales is also seeing impressive capital yield increases. Merthyr Tydfil saw an 0.89% increase, Newport rose by 0.71% (to 4.90%), and Torfaen increased by 0.57% (to 5.28%). These figures highlight Wales as a growing hotspot for value-driven investors.

The Buy-to-Let Market Still Has Muscle
Saveli Kotz, CEO of Cohab, stated: “Despite the government’s best efforts, the buy-to-let sector continues to offer an abundance of opportunity for bricks and mortar investors.”

This data proves that rental yields are not only strong but growing—especially in high-demand urban areas. For investors looking to expand their buy-to-let portfolios, Manchester is leading the pack, while London and key Welsh cities present exciting up-and-coming potential.