Liverpool and Sunderland swoop in next, with a yield of 6.98% and 6.74%. Liverpool currently has an average asking price of around £90,000. One of the big reasons it’s such a great place to invest is because it has a thriving student community, and a constant stream of diverse, high net-worth industries based in the city. Young professionals are a key rental demographic here. Predictions estimate that the North West region, in general, will see house prices rise by 24% through to 2024, so it’s a great place to invest.
The next city on the list is currently generating a yield of 6.09%
Manchester is next; one of the UK's most exciting cities and it’s constantly in demand. It has a growing population of 2.7 million people who need affordable places to live as well as a thriving business scene, aided by establishments like the BBC and MediaCityUK. The yield here is 6.09% and there are so many areas to invest where you’ll receive both good yields and also capital growth. In fact, the average value of residential property in Manchester is set to grow by 17.1% by 2024.
Where are the UK’s worst areas for buy-to-let yields?
Unsurprisingly, higher house prices have a knock-on effect on rental yields. The top 5 worst postcodes for rental yields are NW, SW, W, WC, and EC - all of which sit in London. The City of London actually offers a 3.43% rental yield despite having incredibly high monthly rents. It’s worth remembering that house prices have risen by £380,200 since 2011 and £739,800 since 2001. So if you’re looking for areas of capital growth, the City of London is quite a safe bet.
You can learn more about where property prices have increased this year in our latest blog post. We recommend that you do your own research before committing to any investment.