Earlier this month we reported that Liverpool was topping the yield tables for buy-to-let investments, and this week another study has put Manchester in first place.

Average yields in Manchester are 5.55 per cent, followed by Sunderland at 5.37 per cent, then Liverpool at 5.05 per cent, according to the figures from comparison website GoCompare.

They also put Manchester at the top rental growth at 5.76 per cent, followed by Leicester at 5.3 per cent and then Cardiff at 5 per cent.

The research also found that Stoke on Trent is in least expensive area to buy property with an average property price of £106,000, making it the best place to buy a rental property.

In terms of high costs, London is the most expensive with an average price of £484,000 and the capital is followed by Oxford at £484,000, where demand is high from students.

GoCompare has launched a new interactive tool that allows landlords to compare different cities to find the best location for rents and yields.

It allows users to organise them by average property price and rental yields, population under 35, number of properties available, number of letting/maintenance agencies, number of new housing developments, properties currently available for rent and rental price growth.

Richard Truman, Head of Operations at Simple Landlords Insurance, said: “These league tables can be pretty useful for landlords in their research for new investment areas, and while they may not agree on the exact same list, it’s pretty clear the major northern cities are coming out well when you run the numbers.

"It’s worth remembering though that yield isn’t everything. Our research shows that lots of landlords are starting to look at their investments over the longer term, thinking about their pensions rather than their monthly income.

“Whatever the league tables say, how you invest depends a great deal on your personal circumstances, and personal goals.”