There's lots of speculation about where the best location to invest in BTL property - Totally Money has released a list revealing the top hot, and cold spots to invest to get the best bang for your buck.
The research explored more than 500,000 properties that were marketed for sale online in October 2017 across over 2,700 postcodes, and highlights the significant divide between rental yields in the north and south of the UK:
Top performing locations:
| Top 25 BTL hotspots | Postcode | Postcode town | Avg. yield |
| 1 | L7 | Liverpool | 12.63% |
| 2 | L6 | Liverpool | 10.57% |
| 3 | L15 | Liverpool | 10.29% |
| 4 | PL4 | Plymouth | 10.15% |
| 5 | TS1 | Cleveland | 10.06% |
| 6 | PR1 | Preston | 10.04% |
| 7 | DY5 | Dudley | 9.57% |
| 8 | NG1 | Nottingham | 8.91% |
| 9 | BD1 | Bradford | 8.84% |
| 10 | L1 | Kirkcaldy | 8.61% |
| 11 | L3 | Liverpool | 8.47% |
| 12 | NE6 | Newcastle-Upon-Tyne | 8.41% |
| 13 | HD1 | Huddersfield | 8.32% |
| 14 | M6 | Manchester | 8.25% |
| 15 | LS6 | Leeds | 8.19% |
| 16 | S2 | Sheffield | 8.07% |
| 17 | NE1 | Newcastle-Upon-Tyne | 8.02% |
| 18 | L5 | Liverpool | 7.99% |
| 19 | M14 | Manchester | 7.98% |
| 20 | SR1 | Sunderland | 7.87% |
| 21 | L8 | Liverpool | 7.45% |
| 22 | CF37 | Cardiff | 7.43% |
| 23 | G3 | Glasgow | 7.36% |
| 24 | AB11 | Aberdeen | 7.30% |
| 25 | NE2 | Newcastle-Upon-Tyne | 7.30% |
Worst performing locations:
| 25 BTL coldspots | Postcode | Postcode town | Avg. yield |
| 1036 | NW7 | London | 2.31% |
| 1037 | SW8 | London | 2.29% |
| 1038 | N20 | London | 2.28% |
| 1039 | BN3 | Brighton | 2.28% |
| 1040 | N10 | London | 2.27% |
| 1041 | NW5 | London | 2.25% |
| 1042 | HD9 | Huddersfield | 2.23% |
| 1043 | SO41 | Southampton | 2.21% |
| 1044 | HP23 | Hemel Hempstead | 2.20% |
| 1045 | EN6 | Enfield | 2.20% |
| 1046 | SL8 | Slough | 2.19% |
| 1047 | KT20 | Kingston-upon-Thames | 2.11% |
| 1048 | HA6 | Harrow | 2.10% |
| 1049 | GL53 | Glouchester | 2.03% |
| 1050 | LS18 | Leeds | 2.03% |
| 1051 | BR7 | Bromley | 1.98% |
| 1052 | B15 | Birmingham | 1.96% |
| 1053 | NW11 | London | 1.93% |
| 1054 | EX8 | Exeter | 1.91% |
| 1055 | SL1 | Slough | 1.90% |
| 1056 | BH14 | Bournemouth | 1.86% |
| 1057 | N6 | London | 1.76% |
| 1058 | B70 | Birmingham | 1.68% |
| 1059 | N2 | London | 1.48% |
| 1060 | BH13 | Bournemouth | 1.41% |
Realising a decent return on a buy-to-let rental property is becoming increasingly difficult. Property prices continue to rise steadily, albeit more slowly, and rule changes have made lenders more cautious. Prospective landlords need to go into property investment armed with the facts: they need to be on top of their credit report, compare the market for the best buy-to-let mortgage rates and focus on property investment in areas that can give them the highest yield. The buy-to-let hotspots postcode map pinpoints postcodes and gives landlords a solid steer towards the opportunities that university city student lets offer.
Joe Gardiner, head of brand and communications at TotallyMoney
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