uk rental yield map graphic

UK Buy-To-Let Yield Map 2024

What a difference a year makes!

Our first buy-to-let yield research project in 2022 was well received, along with our follow-up effort last year. For 2024, we’ve continued to dig even deeper to bring you the latest insights into the world of property investment. Using data from various industry sources, we’re in a position to offer a detailed analysis of the current state of play across the UK.

Right now, many landlords are carefully gauging their position in the market and keeping their options open. Inflation, wage stagnation, and rate rises have all had an impact on the sentiment around investment in the last 12 months.

However, while many predicted house prices would plummet, the market instead showed resilience.

Many borrowers were able to withstand the higher interest rates, thanks to a mix of lender support and stricter mortgage affordability stress testing (in place since 2014).

As a result, the volume of property sales decreased significantly as homeowners sought to ride out the interest rate storm, but the effect on prices was more limited. And with interest rates now easing, buy-to-let investors may start to feel more optimistic.

Regardless, whatever happens in 2024, it’s never been more important to weigh up the facts before choosing the right area for your next investment. This year’s report and yield map should help you do just that.

Before we begin, a note on the data: The “top 10” tables are ordered by the highest yield first and, if yields are equal, then by the highest price growth over the past 5 years (so areas with stronger capital appreciation rank first). The “worst 10” tables are flipped.

UK Regions By Yield

UK Region Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
Scotland £215,454 18% £1,022 6.18%
North East £235,251 14% £903 5.18%
Wales £272,896 29% £990 4.88%
North West £249,514 20% £945 4.83%
West Midlands £301,246 21% £1,043 4.57%
East Midlands £252,569 19% £884 4.46%
Greater London £599,652 11% £2,097 4.40%
South West £377,046 24% £1,280 4.34%
South East £451,457 17% £1,502 4.26%
East of England £400,807 17% £1,298 4.15%
Map showing UK regions by rental yield

The breadth of our data has allowed us to pull together a snapshot of rental yields by UK region.

Scotland (6.18%) is currently offering a far greater yield than any other region, with a lead of 1% more than the North East (5.18%) in second place. This is the second year in a row that Scotland has finished top of the regional leaderboard.

Elsewhere, Wales and the North West still offer good opportunities, far more so than the East of England and South West which rank lowest in terms of yield. That said, average house prices in the South West (£377,046) are considerably more accessible than in the South East (£451,467), a key factor for many investors.

Interestingly, this year’s data shows yields have improved across all regions – from an average of 4.29% to 4.79% in the last 12 months.

UK Region Avg Rental Yield - January 2024 Avg Rental Yield - January 2023
Scotland 6.18% 5.70%
North East 5.18% 4.72%
Wales 4.88% 4.68%
North West 4.83% 4.38%
West Midlands 4.57% 4.11%
East Midlands 4.46% 4.10%
Greater London 4.40% 4.00%
South West 4.34% 3.78%
South East 4.26% 3.80%
East of England 4.15% 3.65%
Average 4.72% 4.29%

So, what’s happening?

In short, mortgage rates are starting to cool. The Bank of England base rate has stabilised at 5.25% and many expect it to fall in 2024. Lenders are reacting by lowering their interest rates following a peak in July 2023.

Lower rates mean lower monthly repayments for anyone on a standard variable-rate or tracker mortgage. Plus, many landlords upped their rental prices over the last two years to cover the higher interest rates.

As a result, there’s more wiggle room for profitable returns and, therefore, higher yields.

All in all, 2024 is set to be a much better market for buy-to-let investors.

Note: Unfortunately there is no data available for Northern Ireland.

Top 10 Towns & Cities By Yield

Town/City Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield Change YoY
Middlesbrough £151,370 8.17% £618 7.33% 0.58%
Newcastle £201,958 13.33% £1,197 7.33% 1.51%
Nottingham £228,497 24.86% £1,311 7.30% 1.36%
Glasgow £171,030 23.07% £1,017 7.25% 0.33%
Dundee £181,496 14.60% £917 6.80% 0.23%
Manchester £253,982 27.12% £1,386 6.73% 1.02%
Aberdeen £218,883 -15.80% £819 6.48% 0.45%
Bristol £361,096 23.87% £1,997 6.44% 1.28%
Gateshead £190,435 4.73% £783 6.43% 1.27%
Gloucester £356,080 27.42% £1,404 6.30% 1.92%
Map of Top Towns And Cities By Yield

A breakdown of rental yields by the UK’s towns and cities offers similar reading, as you’d expect, with locations in Scotland, the North East and North West dominating the top positions.

This year, Newcastle came out as the top city for rental yields. The local property market has shown resilience and strength in the past 12 months thanks to higher-than-average levels of activity compared to the rest of the UK.

The North East is set to be the UK’s next high-growth region. Newcastle, as the area’s biggest city, will be at the heart of it.

This is a market with serious potential for early movers.

Meanwhile, 40 miles south, Middlesbrough represents investors’ most cost-effective option. With the lowest average property prices in the top 10 and average rental yields equal to Newcastle, the only reason it falls behind its northeastern neighbour is the lower five-year price change.

Other results of note:

  • Glasgow came out on top last year, with a healthy 6.91% yield. Yields have since improved to 7.25%, but not enough to retain first place in 2024. Nonetheless, the city is still clearly an area that many investors will be considering over the coming years considering its large student population, famed nightlife, and excellent transport links.
  • Bristol and Gloucester are the only cities from the South to edge their way into the top 10. Bristol has some of the highest demand for rental properties in the country, with tenant waiting lists in the hundreds. This demand is causing rents to spike, resulting in higher yields. Meanwhile, Gloucester benefits as a relatively nearby and lower-cost alternative for tenants.

Top 10 Postcodes In The UK By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 M14 Manchester £230,285 41% £2,427 12.00%
2 BD1 Bradford £63,522 35% £679 12.00%
3 NG7 Nottingham £194,361 33% £2,037 12.00%
4 NG1 Nottingham £161,948 7% £1,620 12.00%
5 SR1 Sunderland £68,221 65% £611 10.80%
6 NE4 Newcastle £143,414 18% £1,221 10.20%
7 G52 Glasgow £108,633 29% £886 9.80%
8 GL1 Gloucester £209,203 18% £1,670 9.60%
9 LS4 Leeds £219,955 30% £1,749 9.50%
10 NE6 Newcastle £164,223 19% £1,299 9.50%

For 2024, M14 in Manchester takes the title as the postcode with the most lucrative rental yield in the UK – at a whopping 12%.

Despite three other postcodes generating the same yield, M14 takes the top spot thanks to the whopping 41% price growth over the past five years. The postcode, covering Fallowfield and Rusholme, has a student-heavy population but also attracts interest from young professionals looking for an alternative to the in-demand suburbs of Chorlton and Didsbury.

Last year’s top postcode, BD1 in Bradford, has been knocked down to second, but it still represents an excellent, low-price option for investors (along with Sunderland’s SR1).

The previous section showed that Newcastle, as a city, has the highest average rental yields in the UK so it’s no surprise to find two of its postcodes entering the top 10 – NE4 and NE6.

For those looking elsewhere, NG7/NG1 in Nottingham, G52 in Glasgow, GL1 in Gloucester, and LS4 in Leeds are all well worth consideration, with yields ranging from 9.5% – 12% and prices to suit all budgets.

Map of top yielding postcodes in the UK

Worst 10 Postcodes In The UK By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 HP9 Chiltern £1,140,626 14% £1,992 2.10%
2 W1 Westminster £2,201,118 -9% £4,284 2.30%
3 HR9 Hereford £415,212 32% £863 2.50%
4 CB11 Uttlesford £603,652 5% £1,306 2.60%
5 NP25 Monmouthshire £407,324 29% £876 2.60%
6 TQ7 South Hams £463,226 32% £1,009 2.60%
7 AL5 St Albans £772,823 11% £1,759 2.70%
8 CM4 Brentwood £714,912 19% £1,587 2.70%
9 IP22 South Norfolk £403,566 23% £894 2.70%
10 CH48 Wirral £432,990 44% £965 2.70%

HP9, covering Beaconsfield in Buckinghamshire, takes the crown (or should we say the wooden spoon) as the UK’s worst postcode for rental yield in 2024. Although, as one of the wealthiest areas of the country, we doubt the residents care all too much.

W1 in Westminster continues to perform poorly, moving from sixth to second place in this year’s research whilst maintaining a similar yield: 2.3% vs 2.4% last year.

In areas with high property prices, such as Westminster (W1) and Beaconsfield (HP9), even substantial rental incomes can result in lower yields due to the high initial cost. This is common in affluent areas where property values are significantly elevated.

Instead, properties in these areas tend to provide investment value through capital appreciation over time rather than immediate rental income. Even a small percentage increase in value can net a large return.

In that regard, HR9 (Hereford), TQ7 (South Hams), and CH48 (Wirral) stand out for their significant 5-year price growth (32%, 32%, and 44%, respectively).

London

Top 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 RM10 Barking and Dagenham £346,176 22% £1,787 6.20%
2 SE28 Greenwich £330,270 10% £1,709 6.20%
4 RM9 Barking and Dagenham £371,486 20% £1,878 6.10%
3 IG11 Barking and Dagenham £342,239 9% £1,748 6.10%
5 DA10 Dartford £360,515 -1% £1,793 6.00%
6 E3 Tower Hamlets £428,002 -5% £2,132 6.00%
7 E13 Newham £397,375 9% £1,993 6.00%
8 SE17 Southwark £523,144 -14% £2,553 5.90%
9 DA9 Dartford £302,920 8% £1,455 5.80%
10 DA8 Bexley £335,017 16% £1,582 5.70%

Worst 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 W1 Westminster £2,201,118 -9% £4,284 2.30%
2 WC2 Covent Garden £1,644,973 -27% £3,755 2.70%
3 N2 Barnet £1,007,447 23% £2,247 2.70%
4 SW3 Kensington and Chelsea £1,863,187 -13% £4,334 2.80%
5 NW11 Barnet £978,326 -2% £2,548 3.10%
6 KT17 Epsom and Ewell £584,383 5% £1,521 3.10%
7 SW14 Richmond upon Thames £967,168 7% £2,514 3.10%
8 HA6 Hillingdon £740,355 10% £1,897 3.10%
9 EN6 Hertsmere £658,322 15% £1,686 3.10%
10 W8 Kensington and Chelsea £1,770,455 -1% £4,739 3.20%

Even though London will likely never offer the best possible rental yields for buy-to-let landlords, the charm of the city and sheer scale of demand is still enough to make it a hotspot for UK investment.

Positively, individual postcodes are performing much better year-on-year. Seven of the top ten are generating yields equal to or above 6%, compared to just one last year.

The top spot in 2024 – RM10 in Dagenham (6.2%) – edges out SE28 in Greenwich by virtue of property value growth over the past five years. But the competition is close run in London – there are several postcodes across Barking and Dagenham, Dartford, Newham, and Tower Hamlets all offering good opportunities.

At the other end of the spectrum, W1 in Westminster (2.3%) currently offers the worst value for money on a buy-to-let in London. Property prices in W1 have also decreased by 9% in the past five years, a common theme across several of London’s highest-value postcodes as the top end of the market is hit by the surge in interest rates.

The Midlands

Top 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 NG7 Nottingham £194,361 33% £2,037 12.00%
2 NG1 Nottingham £161,948 7% £1,620 12.00%
3 B29 Birmingham £268,246 28% £1,976 8.80%
4 DN31 Grimsby £78,333 21% £549 8.40%
5 CV1 Coventry £169,789 16% £1,142 8.10%
6 CV4 Coventry £255,237 14% £1,707 8.00%
7 B5 Birmingham £202,011 23% £1,178 7.00%
8 ST1 Staffordshire £120,174 7% £692 6.90%
9 B18 Birmingham £206,243 -2% £1,187 6.90%
10 B12 Birmingham £195,189 59% £1,093 6.70%

Worst 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 HR9 Hereford £415,212 32% £863 2.50%
2 WV16 Shropshire £368,446 15% £844 2.70%
3 S7 Sheffield £338,570 16% £815 2.90%
4 WR2 Worcester £331,444 13% £830 3.00%
5 WS14 Lichfield £420,048 15% £1,060 3.00%
6 DN22 Bassetlaw £279,705 11% £715 3.10%
7 ST14 Staffordshire £323,499 17% £841 3.10%
8 LE17 Leicester £394,905 21% £1,011 3.10%
9 LE15 Rutland £400,694 28% £1,040 3.10%
10 DY9 Dudley £376,109 11% £998 3.20%

Nottingham’s NG7 is the top postcode in the Midlands for rental yields, boasting an impressive 12% return. NG7, known for its student and professional communities, has seen a notable 33% rise in property prices over the last five years. It offers a brilliant balance of capital appreciation and rental income for investors.

Closely following is NG1, another Nottingham postcode, matching NG7’s yield of 12% but with a more modest 7% price growth. This area’s appeal is bolstered by its central location and urban lifestyle, attracting a diverse range of tenants.

Birmingham has four postcodes in the top ten: B29, B5, B18, and B12. The city has become a popular alternative to London in recent years, attracting swathes of young professionals. Combined with a large domestic and international student population, demand for good-quality, central properties outstrips supply – boosting rental prices.

Grimsby’s DN31 makes a surprising entry with an 8.4% yield, supported by a 21% price increase. This area’s affordability and ongoing developments make it an interesting prospect for budget-conscious investors.

The North

Top 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 M14 Manchester £230,285 41% £2,427 12.00%
2 BD1 Bradford £63,522 35% £679 12.00%
3 SR1 Sunderland £68,221 65% £611 10.80%
4 NE4 Newcastle £143,414 18% £1,221 10.20%
5 LS4 Leeds £219,955 30% £1,749 9.50%
6 NE6 Newcastle £164,223 19% £1,299 9.50%
7 TS3 Middlesbrough £79,185 4% £600 9.10%
8 LS2 Leeds £167,637 24% £1,258 9.00%
9 NE1 Newcastle £162,713 5% £1,157 8.50%
10 LS9 Leeds £144,531 15% £997 8.30%

Worst 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 NE20 Northumberland £542,666 18% £1,225 2.70%
2 CH48 Wirral £432,990 44% £965 2.70%
3 L39 West Lancashire £340,681 20% £808 2.80%
4 CW6 Cheshire West and Chester £560,262 23% £1,323 2.80%
5 TS15 Stockton-on-Tees £361,482 19% £860 2.90%
6 SK17 Derbyshire Dales £309,886 26% £780 3.00%
7 LA9 South Lakeland £319,754 25% £821 3.10%
8 CW11 Cheshire East £331,711 5% £871 3.20%
9 CW5 Cheshire East £376,349 9% £990 3.20%
10 CH64 Cheshire West and Chester £365,883 24% £979 3.20%

As we’ve discussed, M14 in Manchester is at the top of the tree as the postcode with the best-performing yield anywhere in the UK.

Newcastle’s NE1, NE4, and NE6 have risen sharply up the ranking since 2023, each offering exceptional yields. If you’re an experienced investor looking for diversification or you’re a first-timer with a limited budget, these postcodes are well worth consideration.

Leeds is also well represented in the top ten: LS2, LS4, and LS9 all taking strong positions. The city is popular with investors due to its huge student population and nightlife.

Meanwhile, buy-to-let investors should steer clear of Cheshire and the Wirral. Five of the lowest-yielding postcodes in the North West come from these neighbouring areas: CW6, CW11, CW5, CH48, and CH64.

Wales

Top 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 SA1 Swansea £157,087 18% £1,205 9.20%
2 CF37 Rhondda Cynon Taf £160,786 25% £1,132 8.50%
3 CF24 Cardiff £233,326 30% £1,415 7.30%
4 CF10 Cardiff £186,458 16% £1,134 7.30%
5 LL57 Gwynedd £214,400 9% £1,268 7.10%
6 CF45 Rhondda Cynon Taf £125,001 16% £700 6.70%
7 NP13 Blaenau Gwent £129,506 28% £697 6.50%
8 NP22 Blaenau Gwent £131,822 48% £638 5.80%
9 SA2 Swansea £300,777 22% £1,463 5.80%
10 CF3 Cardiff £278,162 20% £1,275 5.50%

Worst 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 NP25 Monmouthshire £407,324 29% £876 2.60%
2 SY4 Shropshire £358,297 15% £859 2.90%
3 SY8 Shropshire £370,571 18% £916 3.00%
4 SY2 Shropshire £323,890 22% £868 3.20%
5 SY3 Shropshire £328,959 26% £896 3.30%
6 SY5 Shropshire £383,971 27% £1,046 3.30%
7 SA3 Swansea £425,254 20% £1,274 3.60%
8 NP7 Monmouthshire £365,406 25% £1,137 3.70%
9 CF64 Vale of Glamorgan £382,838 21% £1,226 3.80%
10 CF23 Cardiff £367,615 22% £1,180 3.90%

Wales has been attracting more and more investment in recent years – and looking at postcodes such as SA1 in Swansea and CF37 in Rhondda Cynon Taf, it’s easy to see why. Both areas offer exemplary yields of more than 8.5% and relatively low barriers to entry considering the average property prices are roughly £160,000.

In terms of worst postcodes for buy-to-let yields in Wales, NP25 in Monmouthshire has the lowest yields at just 2.6%, but Shropshire dominates the top ten with five postcodes yielding between 2.9-3.3%.

Scotland

Top 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 G52 Glasgow £108,633 29% £886 9.80%
2 AB24 Aberdeen £95,658 -32% £712 8.90%
3 G4 Glasgow £158,937 9% £1,150 8.70%
4 DD4 Dundee £139,519 14% £984 8.50%
5 AB11 Aberdeen £95,839 -21% £672 8.40%
6 G5 Glasgow £164,998 19% £1,137 8.30%
7 G2 Glasgow £167,000 2% £1,147 8.20%
8 G1 Glasgow £168,652 4% £1,106 7.90%
9 G31 Glasgow £145,950 32% £952 7.80%
10 G11 Glasgow £184,275 17% £1,173 7.60%

Worst 10 Postcodes By Yield

Position Postcode Area Avg Property Price 5 Yr Price Change Avg Monthly Rent Avg Rental Yield
1 G84 Argyll and Bute £242,440 32% £749 3.70%
2 EH10 Edinburgh £437,296 10% £1,435 3.90%
3 EH9 Edinburgh £431,330 17% £1,416 3.90%
4 AB21 Aberdeen £243,484 1% £896 4.40%
5 KA3 East Ayrshire £192,869 12% £702 4.40%
6 G75 South Lanarkshire £198,964 25% £735 4.40%
7 IV2 Highland £236,332 17% £885 4.50%
8 EH12 Edinburgh £366,682 19% £1,412 4.60%
9 ML3 South Lanarkshire £193,735 6% £754 4.70%
10 G33 Glasgow £236,455 9% £926 4.70%

Glasgow postcodes account for 7 of the top 10 best yields in Scotland, so it’s easy to see why investors are beginning to flock north of the border in search of exceptional deals.

Compared with the rest of the UK, the worst yield column certainly isn’t as bad either. Landlords can still secure an average return of 4.7% in Glasgow’s G33 for instance, which would likely sit on the edge of profitability.

Takeaways

Scotland and the North East are currently offering the best yields in the UK, putting forward a strong investment case – especially when you consider the highly affordable prices and strong property value growth.

We’re expecting to see more buy-to-let investors casting their attention towards these areas over 2024 as a result.

But despite higher prices, the North West shouldn’t be ruled out either.

The region has consistently proved a reliable source of returns for investors over the past decade. Manchester’s M14, the strongest-performing postcode in the UK, is a leading light.

Regardless, the top-performing regions, whether it’s Newcastle or Nottingham, Manchester or Middlesbrough, share similar characteristics. Each has a distinct culture, large populations of students and young professionals, intense investment and regeneration plans, and thriving social scenes.

In short, they are places people want to live and work in, which makes them a great pick for UK buy-to-let landlords in 2024.

As you navigate through the year, keep these factors in mind and you can’t go far wrong.

We hope you’ve found this year’s research useful. If you’d like to discuss your buy-to-let property investment plans with one of our advisors then we’d be happy to talk through your best options and answer any questions you have. Use the form below to submit your details and we’ll be in touch!

About The Data

We collected and analysed property market data from over 2,400 postcode areas across England, Scotland and Wales.

Data source: propertydata.co.uk

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