Regency Invest are delighted to present the best and worst areas for buy-to-let rental yields in the UK, essential information for any prospective buy-to-let investor looking to start, or expand their portfolio.
With the high levels of inflation, increases in mortgage interest rates, many investors are looking carefully at where in the UK to invest that will offer a balance of high rental yields for cash-flow and capital growth.
We also explore the regions and cities in the UK with the highest property price growth forecast so property investors can make an informed decision about their next investment property.
Buy-to-Let Rental Yield by Region
| Region |
Average Property Price |
5 Year Rental Growth |
Average Monthly Rent |
Average Rental Yield |
| Scotland |
£206,649 |
23.51% |
£922 |
5.70% |
| North East |
£227,892 |
20.71% |
£782 |
4.72% |
| Wales |
£265,444 |
36.62% |
£919 |
4.68% |
| North West |
£239,021 |
28.48% |
£821 |
4.38% |
| West Midlands |
£299,281 |
28.03% |
£923 |
4.11% |
| East Midlands |
£250,552 |
27.45% |
£790 |
4.10% |
| Greater London |
£597,917 |
14.47% |
£1,914 |
4.00% |
| South East |
£456,964 |
21.65% |
£1,351 |
3.80% |
| South West |
£378,791 |
28.51% |
£1,121 |
3.78% |
| East of England |
£408,430 |
22.09% |
£1,189 |
3.65% |
Top Buy-to-Let Rental Yield by City
| City / Town |
Average Property Price |
5 Year Rental Growth |
Average Monthly Rent |
Average Rental Yield |
| Glasgow |
£166,041 |
27.17% |
£968 |
6.91% |
| Middlesbrough |
£151,256 |
15.17% |
£601 |
6.75% |
| Dundee |
£172,958 |
27.80% |
£848 |
6.57% |
| Preston |
£177,171 |
15.00% |
£924 |
6.30% |
| Swansea |
£233,783 |
34.57% |
£1,274 |
6.10% |
| Aberdeen |
£169,770 |
-9.30% |
£742 |
6.03% |
| Nottingham |
£232,014 |
27.86% |
£1,096 |
5.94% |
| Southampton |
£263,503 |
17.50% |
£1,263 |
5.85% |
| Newcastle |
£201,288 |
13.33% |
£935 |
5.81% |
| Salford |
£221,114 |
42.33% |
£1,069 |
5.76% |
Top Buy-to-Let Rental Yield by Postcode
| Postcode |
Area |
Avg Property Price |
5 Yr Price Change |
Avg Monthly Rent |
Avg Rental Yield |
| BD1 |
Bradford |
£64,805 |
4% |
£575 |
10.70% |
| LS2 |
Leeds |
£147,827 |
49% |
£1,238 |
10.00% |
| M14 |
Manchester |
£222,830 |
40% |
£1,765 |
9.50% |
| LS4 |
Leeds |
£213,669 |
31% |
£1,658 |
9.30% |
| NG7 |
Nottingham |
£196,583 |
34% |
£1,423 |
8.70% |
| CF37 |
Rhondda Cynon Taf |
£155,836 |
36% |
£1,114 |
8.60% |
| B29 |
Birmingham |
£268,335 |
21% |
£1,916 |
8.60% |
| SR1 |
Sunderland |
£75,888 |
56% |
£536 |
8.50% |
| TS3 |
Middlesbrough |
£85,440 |
25% |
£604 |
8.50% |
| SA1 |
Swansea |
£153,226 |
17% |
£1,074 |
8.40% |
Lowest Buy-to-Let Rental Yield by Postcode
| Postcode |
Area |
Avg Property Price |
5 Yr Price Change |
Avg Monthly Rent |
Avg Rental Yield |
| W1 |
Westminster |
£2,256,107 |
-15% |
£4,421 |
2.40% |
| W8 |
Kensington and Chelsea |
£2,013,838 |
-9% |
£4,139 |
2.50% |
| N10 |
Haringey |
£797,653 |
11% |
£1,754 |
2.60% |
| IG5 |
Redbridge |
£584,143 |
18% |
£1,296 |
2.70% |
| WD4 |
Dacorum |
£617,215 |
6% |
£1,429 |
2.80% |
| N6 |
Camden |
£865,755 |
9% |
£2,028 |
2.80% |
| SW3 |
Kensington and Chelsea |
£1,602,417 |
10% |
£3,695 |
2.80% |
| WD7 |
Hertsmere |
£875,278 |
28% |
£2,077 |
2.80% |
| SW7 |
Kensington and Chelsea |
£2,089,942 |
7% |
£4,970 |
2.90% |
| KT20 |
Reigate and Banstead |
£705,589 |
40% |
£1,734 |
2.90% |
5 Year Forecast Property Price Growth by City
| Sales price growth (% pa) |
2023 |
2024 |
2025 |
2026 |
2027 |
Cumulative
2023-27 |
Average pa
2023-27 |
| Bristol |
0.5 |
2.0 |
3.5 |
4.0 |
6.0 |
17.0 |
3.2 |
| Birmingham |
1.0 |
2.0 |
4.0 |
4.5 |
6.5 |
19.2 |
3.6 |
| Manchester |
1.5 |
2.5 |
4.0 |
4.0 |
6.0 |
19.3 |
3.6 |
| Leeds |
0.0 |
1.5 |
3.0 |
4.0 |
5.0 |
14.2 |
2.7 |
| Liverpool |
-1.0 |
1.5 |
3.0 |
3.5 |
4.5 |
11.9 |
2.3 |
| Edinburgh |
1.0 |
2.0 |
3.5 |
4.5 |
5.5 |
17.6 |
3.3 |
| Glasgow |
0.0 |
1.5 |
3.0 |
4.0 |
5.0 |
14.2 |
2.7 |
Where to Invest in Buy-to-Let Property?
The North West of England offers buy-to-let investors an excellent balance of both great cash-flow with high rental yields and strong property price growth:
- strong average rental yields
- cities such as Salford are within the top 10 for buy-to-let rental yields
- low average property prices
- cities such as Manchester are forecast to experience 19.3% price growth over the next 5-years
Invest in Manchester's latest development, Berkeley Square, with prices from £200,000, rental yields of 7% est and 19.3% price growth forecast.
Source: Propertydata.co.uk & JLL UK Residential Forecast
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