Buy To Let Yield Map UK 2022
CategoriesInvestor Advice Location Guides Rental Yields

 

As house prices are predicted to rise steadily through 2022, property investment looks set to continue being a popular choice for many. The current average rental yield for the UK is 3.63%, however, savvy investors know that much greater returns can be had in certain locations, but where?

At Track Capital we have analysed up to date market prices for 1350 UK postcode districts and created this handy guide to the best places for buy-to-let investors in the UK, looking at rental yields for all of the locations we have data for.

Buy To Let Yield Map UK 2022

Top 25 UK Postcode Regions By Yield

Position Postcode Area Avg asking price Sales per month Avg asking rent (pm) Avg yield
1 NG7 Nottingham 170,278 10 1,598 11.30%
2 NG1 Nottingham 159,083 5 1,473 11.10%
3 BD1 Bradford 54,526 8 483 10.60%
4 M14 Manchester 205,102 10 1,721 10.10%
5 NE6 Newcastle Upon Tyne 134,641 21 1,104 9.80%
6 YO10 Yorkshire 286,470 12 2,328 9.80%
7 SA1 Swansea 140,001 21 1,073 9.20%
8 CF37 Cardiff 135,985 20 1,039 9.20%
9 SO17 Southampton 223,073 6 1,709 9.20%
10 YO31 Yorkshire 281,391 20 2,141 9.10%
11 NR5 Norwich 261,284 12 1,934 8.90%
12 SR1 Sunderland 74,502 2 542 8.70%
13 LS2 Leeds 153,957 2 1,078 8.40%
14 LS4 Leeds 203,493 6 1,364 8.00%
15 CF24 Cardiff 211,417 18 1,397 7.90%
16 NE2 Newcastle Upon Tyne 210,053 15 1,377 7.90%
17 SO14 Southampton 204,877 16 1,347 7.90%
18 TR11 Truro 354,248 20 2,316 7.80%
19 B29 Birmingham 234,974 16 1,507 7.70%
20 DN31 Doncaster 76,659 5 490 7.70%
21 NE1 Newcastle Upon Tyne 151,639 5 968 7.70%
22 SA2 Swansea 265,882 23 1,706 7.70%
23 G5 Glasgow 150,185 4 961 7.70%
24 G67 Glasgow 78,920 5 506 7.70%
25 AB11 Aberdeen 95,319 9 596 7.50%

At first glance, we can see a couple of interesting takeaways from this data. Firstly, with Nottingham taking the top two spots, and cities like Manchester and Newcastle not far behind, it seems that cities with prominent student populations have the potential to return high yields, the M14 postcode of Manchester for example is an area with a high population density of students attending its main universities. Secondly, it appears that if you want high rental yields, head north.

Worst 25 Postcodes By Yield

Poistion Postcode Area Avg asking price Sales per month Avg asking rent (pm) Avg yield %
1 GU10 Guildford 675,577 19 1,075 1.9
2 HP9 Hemel Hempstead 1,173,312 15 1,944 2
3 IG4 Ilford 659,997 3 1,112 2
4 WD7 Watford 817,952 10 1,451 2.1
5 CM4 Chelmsford 685,863 11 1,257 2.2
6 B93 Birmingham 572,043 16 1,036 2.2
7 AL4 St Albans 630,017 14 1,181 2.2
8 KT13 Kingston 680,956 22 1,330 2.3
9 W1 London 2,050,988 13 3,889 2.3
10 SL9 Slough 851,315 11 1,708 2.4
11 SL0 Slough 545,368 7 1,112 2.4
12 GU6 Guildford 580,059 15 1,158 2.4
13 SW3 London 1,790,064 15 3,532 2.4
14 WR2 Worcester 305,920 19 611 2.4
15 EX10 Exeter 414,458 17 833 2.4
16 SG3 Stevenage 505,983 8 1,062 2.5
17 RH13 Redhill 465,458 24 965 2.5
18 GL53 Gloucester 530,747 14 1,104 2.5
19 SW13 London 1,160,781 12 2,423 2.5
20 CM24 Chelmsford 493,420 9 1,022 2.5
21 GU32 Guildford 491,177 5 1,026 2.5
22 LS29 Leeds 382,220 31 789 2.5
23 SY4 Shrewsbury 322,802 15 663 2.5
24 NW11 London 890,463 16 1,822 2.5
25 N6 London 757,583 16 1,637 2.6

Unsurprisingly we see the opposite pattern with the worst performing rental yields, the south of England, specifically london and the commuter belt where house prices are generally much higher than the rest of the country, making up all but a couple of the postcodes.

The North - Top 20 Postcodes By Yield

Position Postcode Area Avg asking price Sales per month Avg asking rent (pm) Avg yield %
1 BD1 Bradford 54,526 8 476 10.5
2 M14 Manchester 205,452 10 1,736 10.1
3 NE6 Newcastle Upon Tyne 135,345 21 1,106 9.8
4 YO10 Yorkshire 286,440 12 2,275 9.5
5 YO31 Yorkshire 281,579 20 2,199 9.4
6 SR1 Sunderland 74,502 2 537 8.6
7 LS2 Leeds 155,334 2 1,062 8.2
8 LS4 Leeds 203,493 6 1,342 7.9
9 NE2 Newcastle Upon Tyne 210,053 15 1,358 7.8
10 NE1 Newcastle Upon Tyne 151,813 5 965 7.6
11 TS1 Middlesbrough 68,119 7 420 7.4
12 TS3 Middlesbrough 81,914 10 501 7.3
13 NE4 Newcastle Upon Tyne 129,478 6 765 7.1
14 LA1 Lancaster 166,462 27 952 6.9
15 L15 Liverpool 170,150 12 971 6.9
16 L4 Liverpool 106,086 15 605 6.8
17 LS6 Leeds 242,456 16 1,370 6.8
18 TS4 Middlesbrough 105,217 7 569 6.5
19 M13 Manchester 216,963 2 1,175 6.5
20 DL4 Darlington 74,148 6 394 6.4

Each of the top 20 northern postcodes return much higher yields than the national average of 3.63%, with the top 10 postcodes easily doubling that return. Bradford’s BD1 postcode benefits from having a very low average asking price with properties regularly selling for below £50,000, it’s clear then that strong returns can be generated from the north’s cities.

Manchester

In recent years Manchester’s property market has grown at a promising rate, with achieved rent growing along with an increase in property prices. Investors aren’t short of options when it comes to where they put their money in the city, with new development projects being constructed and completed at an impressive rate and around 100,000 students in the city at any given (term) time. The M14 postcode, popular with students, is one of the best performing in the country. This city might be one of the most attractive prospects for property investment anywhere in the UK.

Dec 2019 - Nov 2021 achieved rent & sold property price. (Source: REalyse)

Liverpool

Liverpool has been recognised in recent years as the number one place in the UK for investors seeking to maximise yields, driven by affordable property prices throughout the city and higher than average yields, with the L15 and L4 postcodes reaching an average of 6.9% and 6.8% respectively. Liverpool is a city that, whilst steeped in history, is embracing modernisation, including a plan to invest billions in the redevelopment of its historic waterfront.

Liverpool Property price and rent comparison
Dec 2019 - Nov 2021 achieved rent & sold property price. (Source: REalyse)

Newcastle-Upon-Tyne

Another bustling city with industrial heritage, Newcastle is now a popular hub for business and education. Featuring strongly on the best buy-to-let areas, 3 of the city’s postcodes are in the top 25, with impressive yields of up to 9.8%. A slight decline in house prices and an upward trend in rental prices may indicate that now is an ideal time to consider investing in Newcastle.

Newcastle property price and rent comparison
Dec 2019 - Nov 2021 achieved rent & sold property price. (Source: REalyse)

London’s 10 Best Postcodes By Yield

Position Postcode Area Avg asking price Sales per month Avg asking rent (pm) Avg yield %
1 DA9 Dartford 274,808 10 1,193 5.2
2 RM19 Romford 217,580 5 927 5.1
3 IG11 Ilford 329,241 15 1,375 5
4 RM8 Romford 343,608 9 1,419 5
5 SE17 London 515,062 10 2,076 4.8
6 SE28 London 306,806 6 1,221 4.8
7 RM9 Romford 350,135 12 1,397 4.8
8 N9 London 356,925 12 1,390 4.7
9 RM10 Romford 354,070 13 1,397 4.7
10 TW20 Twickenham 454,993 15 1,788 4.7

Not without its merits, London and its immediate surrounding areas may not be the best place to look for those seeking the maximum rental yields, however, above-average returns can still be realised in and around the city.

Each of these may return some satisfactory yields if you factor in average property values in these areas. The best yields are to be found a little further out in the areas of Dartford and Romford, places still within commuting distance to the city.

London’s 10 Worst Postcodes By Yield

Position Postcode Area Avg asking price Sales per month Avg asking rent (pm) Avg yield %
1 IG4 Ilford 659,997 3 1,112 2
2 WD7 Watford 817,952 10 1,451 2.1
3 W1 London 2,050,988 13 3,889 2.3
4 KT13 Kingston 680,956 22 1,330 2.3
5 SW3 London 1,790,064 15 3,532 2.4
6 NW11 London 890,463 16 1,822 2.5
7 SW13 London 1,160,781 12 2,423 2.5
8 N6 London 757,583 16 1,637 2.6
9 SW10 London 1,293,918 12 2,806 2.6
10 SW5 London 1,038,567 8 2,328 2.7

On the flip side, we will take a look at Londons worst-performing postcodes. It’s no surprise to see some of the more expensive postcodes in London on this list, where even a much higher than average rent barely makes a dent in the asking price of a property.

Wales - Top 10 Postcodes By Yield

Position Postcode Area Avg asking price Sales per month Avg asking rent (pm) Avg yield %
1 CF37 Cardiff 136,008 20 1,057 9.3
2 SA1 Swansea 140,001 21 1,071 9.2
3 CF24 Cardiff 211,863 18 1,422 8.1
4 SA2 Swansea 266,231 23 1,713 7.7
5 CF10 Cardiff 179,271 7 1,062 7.1
6 LL57 Llandudno 182,895 10 966 6.3
7 CH41 Chester 107,960 9 547 6.1
8 NP13 Newport 116,670 12 567 5.8
9 CF48 Cardiff 135,141 10 611 5.4
10 CH65 Chester 149,454 13 643 5.2

Glancing over the border into Wales we take a look at their most profitable buy-to-let properties. Now then, for the purposes of this report, the CH postcode of Chester, Merseyside and North East Wales is included under the banner of Wales, as this area still provides some promising buy-to-let opportunities that would be missed if solely grouped in with the north of England. 

It Looks however like the Welsh capital, Cardiff, and the city of Swansea share 60% of the top 10 postcodes in Wales, including each of the top 5 spots. Asking rents that can typically be expected of a UK capital city, combined with affordable property prices indicate that Cardiff could be worth serious consideration in the future.

Cardiff property price rent comparison
Dec 2019 - Nov 2021 achieved rent & sold property price. (Source: REalyse)

Worst 10 Postcodes For Yields In Wales

Position Postcode Area Avg asking price Sales per month Avg asking rent (pm) Avg yield %
1 NP25 Newport 338,619 10 748 2.7
2 CF64 Cardiff 360,629 27 933 3.1
3 LL13 Llandudno 189,119 16 564 3.6
4 CF23 Cardiff 302,147 22 953 3.8
5 CF72 Cardiff 271,362 22 858 3.8
6 LL11 Llandudno 185,979 21 611 3.9
7 SY23 Ceredigion 234,946 16 755 3.9
8 CF31 Cardiff 212,763 23 709 4
9 LL18 Llandudno 173,930 20 588 4.1
10 NP20 Newport 199,505 22 690 4.1

Much like the other “worst postcodes” data we have, the property prices found in these locations ensure that yields are low, however, some of these are popular tourist areas where high prices are to be expected and rental income can be seasonal, for example, LL18 covers the very popular tourist town of Rhyl and SY23 includes Aberystwyth.

Scotland - 10 Best Postcodes By Rental Yield

Position Postcode Area Avg asking price Sales per month Avg asking rent (pm) Avg yield %
1 G5 Glasgow 150,185 4 961 7.7
2 G67 Glasgow 78,920 5 506 7.7
3 G32 Glasgow 96,052 7 600 7.5
4 AB11 Aberdeen 95,319 9 596 7.5
5 G14 Glasgow 108,625 8 672 7.4
6 PA1 Paisley 96,948 6 564 7
7 AB24 Aberdeen 105,712 10 601 6.8
8 DD4 Dundee 117,132 10 643 6.6
9 G31 Glasgow 132,249 7 718 6.5
10 G2 Glasgow 174,052 2 925 6.4

North of the border into Scotland, it’s easy to focus on investment opportunities in either Edinburgh or Glasgow, but what does the data show us? Where are the areas that could potentially deliver the best returns?

Well, it seems that if you want to see the highest return on investment for a rental property in Scotland there are fewer better places to look than Glasgow. Aberdeen’s AB11 postcode sneaks in amongst Glasgow with an impressive 7.5% yield. We can also see that there are on average more property sales per month in cities outside Glasgow, perhaps making them easier markets to enter, with more choice for investors.

Glasgow property price rent comparison
GLASGOW: Dec 2019 - Nov 2021 achieved rent & average property asking price. (Source: REalyse)

Worst Postcodes In Scotland By Yield

Postcode Area Avg asking price Sales per month Avg asking rent (pm) Avg yield
G84 Glasgow 217,878 7 639 3.5
KA3 Kilmarnock 160,030 7 481 3.6
EH10 Edinburgh 364,537 7 1,112 3.7
DD2 Dundee 204,500 9 651 3.8
PH2 Perth 185,328 11 606 3.9
AB15 Aberdeen 278,482 13 900 3.9
IV2 Inverness 217,643 14 708 3.9
EH12 Edinburgh 313,919 8 1,043 4
EH3 Edinburgh 407,795 12 1,364 4
PH1 Perth 161,937 15 535 4

On the opposite end of the scale we see results spread out across the country a little more, with Edinburgh featuring more than any other area. High property prices in some areas of the Scottish capital keep the figure low, although the city is a draw to many tourists and students alike.

Conclusion

This data has shown that there are some very promising areas through the UK for property investment. The north of England remains strong for delivering consistent high yields, balancing property prices, rising rents and steady demand. Above 7% yields are possible in the northern cities of Manchester, Liverpool, Leeds and Newcastle. 

Data from properties in London will naturally show lower yields, however, there are still opportunities present in the Greater London area, where prices are slightly lower than the city centre driven by demand from commuters.  

For an in-depth guide to beginning your property investment journey please check out our Ultimate guide to property investment and for more information or advice on property investment feel free to get in touch here, give us a call or drop us an email and we’d be happy to answer any questions.

About the data

We analysed UK rental yield and property price data from 1350 postcode areas. This data was provided by propertydata.co.uk and graphs were produced using data from REalyse.

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