Top 10 buy-to-let hotspots in Britain

Top 10 buy-to-let hotspots in Britain Image

Lower house prices translate into higher yields for landlords in northern England and Scotland, according to our data.

 

Northern England and Scotland provide the best returns for buy-to-let landlords, with some locations offering yields of more than 8%.

Rochdale in Greater Manchester topped the table for the most lucrative place in which to be a landlord, with low property prices and rents in a two-bedroom home of £738 translating into gross annual yields of 9%.

At the other end of the scale, the commuter hotspot of St Albans offered the lowest returns at just 3.7%, according to Zoopla.

Annabel Dixon, spokesperson for Zoopla, said: “Despite the challenges facing the sector, yields - particularly in North England and Scotland - match up well against other forms of investment.

“It's no surprise that towns further south provide lower yields. House price growth has slowed, but property is still considerably more expensive in these locations, meaning that even with higher rents, the returns are more limited for landlords.”

On a regional basis, Scotland offered the best yields at 6%, followed by Yorkshire and the Humber and North West England at 5.4%.

Returns were lowest in the South West and London at 4.2%.

Where are the best buy-to-let towns?

While Rochdale topped the poll for the best buy-to-let returns, Blackpool was not far behind offering yields of 8.6%, followed by Glasgow at 8%, with Wigan in fourth place and Middlesbrough coming fifth.

Not only were all of the top 10 towns in northern England or Scotland, but they all had house prices that were significantly below the national average, contributing to the higher yields.

Middlesbrough had the lowest house prices on the list at just £84,728, offering gross yields of 6.9% despite average monthly rent on a two-bedroom property coming in at only £489.

Last Updated: 19/07/2019

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