Andrew Parker, managing director and auctioneer at SDL Property Auctions, has researched what he believes are the top postcodes for buy-to-let yields, within Scotland, Wales, England and London.
Parker says: “When looking at the UK as a whole, the best buy-to-let areas are concentrated around the North of England. This is likely due to the growing demand for housing in these areas, as businesses from sectors such as technology, life sciences and professional service, which were historically maintained in highly populated cities such as London, move further North to make the most of lower operating costs brought about by remote working. Manchester, Newcastle and Leeds are great examples of this, while surrounding areas such as Bradford and Sunderland also make the list as a result of their proximity, good transport links and lower rental costs.”
Using median market rent per month data from Home.co.uk, the report estimates that the highest rental yields in England are in Bradford (BD1) at 12.3%, followed by Manchester (M14) at 10.4%, and Newcastle (NE1) and Sunderland (SR1), both at 10.3%.
Parker says: “Of the highlighted cities, Bradford, Sunderland and Middlesbrough also all have average property values of under £100,000, making them ideal for investors looking for a steady earner with smaller start-up costs.”