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Best buy-to-let yields to be found in Liverpool and Scotland

Monday 21 October 2019

Some of the highest buy-to-let yields are to be found in Liverpool and Scotland, according to a new study by credit experts TotallyMoney.
 
Properties in Liverpool appear to offer particularly good returns, with the L1 postcode offering an average rental yield of 10 per cent.
 
Buy-to-let investors can acquire a property for an average of £90,000 and expect to support their investment with an asking rent of about £750 per calendar month.
 
Two Scotland postcodes make the top three, and they are Falkirk’s FK3 and Glasgow’s G52, returning 9.51 per cent and 8.71 per cent yields respectively.
 
A total of nine Scottish areas feature in the top 25, and you can check out the table and a rental yields map of the UK here.

In fact, 16 of the top 25 postcodes are in the North West, predominantly Liverpool and Scotland.
 
The North East also has some top performers. TS1 and TS3 in Cleveland rank fifth and 12th  respectively, while Sunderland features twice, in the SR8 and SR5 postcodes, while Gateshead’s NE8 has a 7.27 per cent yield - putting it in 18th position.
 
The majority of the strongest UK postcodes return a yield of 7 per cent. These include Leeds’ LS2 (7.92 per cent), Cardiff’s CF43 (7.61 per cent), Aberdeen’s AB11 (7.20 per cent) and Lancaster’s LA14 (7.06 per cent).
 
All postcodes in the top 25 have property asking prices under the current UK national average of £232,710.
 
At the other end of the spectrum, a number of commuter belt areas have the lowest yields.
 
At the very bottom is AL5 in St Albans. The average buying price for a property is £800,000, and asking rent is £1,300 per calendar month, which means a total yield of just 1.95 per cent.
 
This puts it below Kensington’s W8 postcode in London, which still manages to squeeze out a 2.05 per cent return for landlords even though average property prices are a hefty £1,962,500.
 
Other commuter spots in the bottom 10 include RG10 in Reading (2.26 per cent), GU10 in Guilford (2.22 per cent) and KT7 in Kingston upon Thames (2.20 per cent).
 
 

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