A new survey by TotallyMoney provides both an interesting insight into the market and a useful tool for buy-to-let landlords.
They surveyed 500,000 properties across England, Scotland and Wales to find the areas that offer the highest buy to let yields.
It shows Buy-to-let landlords can still expect to achieve double-digit yields when investing in the north of England.
University cities were placed strongly on the league table of buy-to-let hotspots. Students are reliable tenants and can give landlords the kind of stable rental income needed to realise a healthy return on their investment.
Ranking 22nd, Cardiff’s CF37’s Pontypridd postcode was the only Welsh postcode in the UK’s top 25, producing yields of 7.43 %.
Many Scottish postcodes didn’t make the cut due to a lack of data.
No postcodes from London or the Home Counties make the top 25 Buy-To-Let yielding postcodes. Head to East London for the capital’s best buy-to-let postcodes, with Stratford’s Olympic Park area, Plaistow and East Ham yielding 6.19%, 4.7% and 4.64% respectively.
The worst-yielding postcodes in London can mainly be found in North and North West of the city. Although rents are almost £4,000 per month, the average house price in some boroughs is nearly 13x the national average.
Joe Gardiner, Head of Brand and Communications says:
“Realising a decent return on a buy-to-let rental property is becoming increasingly difficult. Property prices continue to rise steadily, albeit more slowly, and rule changes have made lenders more cautious.”