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).

In summary:

  • The north of England and Scotland are home to the top 10 towns that are reaping the highest gross rental yields on average. Notably Rochdale, Blackpool and Glasgow.
  • Buy-to-let properties in the south of England, inclusive of the capital and its commuter towns, are producing some of the lowest gross yields in the UK.
  • For those set on investing in London, the borough of Barking and Dagenham is worth exploring, with an average rental yield of 5.34% (£1,247 a month).

 

Headshot of Anabelle Dixon, spokesperson for Zoopla

 

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.


Buy-to-let towns ranked by gross yield

Rank Town Avg. asking price (2 bed) Avg. monthly rent (2 bed) Gross yield
1 Rochdale £98,360 £738 9.00%
2 Blackpool £94,509 £678 8.60%
3 Glasgow £116,902 £775 7.96%
4 Wigan £101,689 £601 7.09%
5 Middlesborough £84,728 £489 6.92%
6 Sunderland £91,145 £508 6.69%
7 Dundee £109,750 £611 6.68%
8 Durham £98,436 £533 6.50%
9 St Helens £85,909 £463 6.46%
10 Bradford £87,987 £469 6.40%