Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Northern Cities Lead UK Buy-to-Let Rental Yield Rankings
Buy-to-let landlords are achieving estimated gross rental yields approaching 7% in some parts of England, according to new research. The Letting Partnership's analysis highlights that northern cities continue to offer some of the strongest returns for investors.
The research puts the average nominal rental yield across England at 5.9%, based on an average property price of £293,262 and a monthly rent of £1,446. Newcastle upon Tyne tops the list with an estimated yield of 6.9%, calculated from an average property price of £208,589 and a monthly rent of £1,206.
Portsmouth and Manchester follow closely, both recording estimated yields of 6.5%. Southampton and the London borough of Tower Hamlets each have yields of 6.4%. Other cities highlighted in the analysis include Bristol, Blackpool, and Nottingham, each with estimated yields of 6.3%, while Lincoln and Kingston upon Hull are at 6.2%.
The figures underline the variation in buy-to-let returns across England, with some regional markets delivering stronger headline yields than areas with higher property values. For example, Westminster has an average monthly rent of £3,168 but an estimated nominal yield of 4.5%. Kensington and Chelsea, with the highest monthly rent in the analysis at £3,596, has an estimated yield of just 3.5%. These rents equate to gross annual rental incomes of over £38,000 in Westminster and £43,000 in Kensington and Chelsea before costs.
The research suggests that yield remains a key consideration for landlords, with certain regions continuing to offer attractive returns.
Source: Property Industry Eye