The UK's Best Buy-To-Let Locations

The UK's leading property search engine Home.co.uk has researched and calculated the best (and worst) performing buy-to-let locations in the UK in terms of typical returns on capital invested. Statisticians from the website worked out the "rental yields" in hundreds of UK towns by comparing the asking prices and market rents for 2-bedroom properties.

Top 10 Locations for 2-Bedroom Home Rental Yields

Location No. 2-Bed Properties for Sale Typical Asking Price(£) No. 2-Bed Properties for Rent Typical Rent (£ pcm) % Rental Yield (gross per annum)
Bootle 331 70000 113 450 7.7
Hamilton 410 80000 129 495 7.4
Thamesmead 169 175000 180 1075 7.3
Mansfield 464 85000 113 494 7.0
Manor Park 128 156250 116 895 6.9
Brentford 214 307500 238 1733 6.7
Beckton 115 195000 128 1094 6.7
Dundee 362 89475 214 490 6.6
London* 21754 305000 22600 1650 6.5
Hull 1213 87950 221 472 6.4
*The typical asking prices and rent for London were calculated by sampling over all properties in the Home.co.uk property search within 10 miles of the centre of London

"Investors in the rental property market need to research their chosen location carefully in order to maximise potential yields," commented Doug Shephard, Director at Home.co.uk. "These top gross rental yields are highly attractive to buy-to-let investors. They more than cover typical mortgage interest payments and other expenses and offer a good potential return on capital."

The worst letting locations in terms of gross rental yield are dominated by the most expensive parts of London (Knightsbridge, Charing Cross, Soho, Holborn, Marylebone, Mayfair, The Strand, Regents Park, Bloomsbury) with typical rental yields between 3.6% and 4.3%. Outside of London, Margate gives the worst return for investors with a typical rental yield of 4.3%.

Landlords can research and compare all asking price trends and market rents in thousands of locations on the Home.co.uk Home Information pages eg House Prices Menu for Harrogate and Rental Market Summary for Harrogate.

NB: 246 towns and cities with more than 100 2-bedroom properties for sale and rent were included in the rental yield calculations.

Notes for Editors

Over the last 28 years, Home.co.uk has become established as a dynamic, innovative and ethical service. By providing the UK's most comprehensive Property Search and Estate Agents directory coupled with detailed House Price analysis, Home.co.uk delivers the real power of the Internet to inform and empower estate agents, homebuyers, renters, landlords and sellers in across the UK.

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