Yearning for yields? Where to find the best in the UK

Despite all the ups and down associated with being a landlord in this day and age, there is no doubt that in certain parts of the UK there are still some very attractive opportunities if you can find the perfect property.

With all working against landlords the rising price of property, the tax crackdown and the stamp duty issue, it’s hard to believe that there are still location that provide savvy landlords with great yields – but you just have to know where to look!

Recent research by peer-to-peer lender Kuflink has explored the figures in 50 major towns across the UK, and found that for landlords looking to source the best bang for their buck are best places to invest in Manchester and Salford, with properties providing average rental yields of 6.7% and 6.6%.

Despite its popularity, historic Cambridge came out bottom, with the lowest average rental yield of just 2.7%.

The top ten towns are:

TownRegionAverage Rental Yeild
(%) December 2016
ManchesterNorth West6.73
SalfordNorth West6.68
PortsmouthSouth East5.75
CoventryWest Midlands5.37
SouthamptonSouth West5.19
NottinghamEast Midlands4.90
BirminghamWest Midlands4.73
StockportNorth West4.65

The rift between north and south continues, but this time the attention is turning north. Buy-to-let properties in the North can be a steady investment, attracting renters who cannot afford to step onto the property ladder and therefore choose to rent in good locations, which are well-suited to their lifestyle. Manchester and Leeds are both bustling cities, popular with young professionals and families, and can offer solid returns for landlords. While Birmingham, which has a growing business district and is soon to benefit from HS2, cutting journey time to London to just 49 minutes, is also firmly on the map as a strong buy-to-let spot. It could be time for landlords to turn their attention away from pricey London and look to the UK’s regional cities.

Tarlochan Garcha, CEO at Kuflink

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