It’s no secret. Landlords are always looking for the best high yield areas to invest in. So, we thought we could help with your research by writing an article on it!
At the start of the year, TotalMoney researched across the United Kingdom into where the best buy-to-let areas are. They looked at around 500,000 houses across England, Scotland and Wales whilst analysing the yields generated in the area.
Of those looked at, sixteen of the top twenty-five postcodes were in the North West and Scotland. Predominately, most of the North West postcodes were in the area of Liverpool. According to their data, the top ten buy-to-let areas are as follows:
Within the top twenty-five, postcodes in the North East prominently featured five times. With Cleveland TS1 coming fifth and Cleveland TS3 coming in at twelfth place. Also in the top 25, Sunderland featured twice with the postcodes SR8 and SR5, plus in 18th place sat Gateshead with the postcode NE8.
All of the top 25 postcodes (apart from SR5 in Sunderland that came in at 6.99%) had around a yield higher than 7%. This included Leeds with LS2 (7.92%), Cardiff with CF43 (7.61%) and Aberdeen with AB11 (7.2%).
Looking at TotalMoney’s data, there has been some surprising areas come within the top 25 areas that are the worst buy-to-let in terms of high yield. Within the data, it has conveyed that even some commuter places have come out as having the lowest yields.
Within the top ten was:
The lowest, according to their data, was AL5, close to the commuter town of St Albans. The average buying price around the area is £800,000 and the average rent being £1,300; Thus creating a small yield of 1.95%.
TotalMoney have researched from data they have found on around 478,486 properties across the UK, both rentals and for sale. When defining the word ‘yield’ the business used it in basic terms. Meaning they looked at the average annual rent and then divided this by the average asking price within the area.
However, one thing to bare in mind is that these figures do not take in mind the cost of a mortgage. Plus, they looked at thirty for sale properties and thirty rental properties.
I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.
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