Zoopla’s analysis of gross annual yield* reveals the most lucrative towns for buy to let investors.
Rochdale in Lancashire boasts a gross annual yield on a two-bedroom property at 9.00%, (£738 a month average rent). Blackpool and Glasgow are named as the second and third best performing areas, with average rental yields of 8.60% (£678 a month) and 7.69% (£775 a month) respectfully.
At the other end of the scale, St Albans is placed at the bottom with an annual yield of 3.65% (£1,209 a month) followed by Croydon, at 3.83% (£1,309 a month) and then Hereford at 3.93% (£635 a month).
Annabelle Dixon, spokesperson for Zoopla, commented:
“Despite the challenges facing the sector, yields – particularly in North England and Scotland – match up well against other forms of investment.
It’s no surprise that towns further south provide lower yields. House price growth has slowed, but property is still considerably more expensive in these locations, meaning that even with higher rents, the returns are more limited for landlords.”
|Rank||Town||Avg. asking price (2 bed)||Avg. monthly rent (2 bed)||Gross yield|