Tue, 15 Mar 11
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 gross rental yields in hundreds of UK towns by comparing the asking prices and market rents for 2-bedroom properties.
“Investors in the rental property market need to research their chosen location carefully in order to maximise potential yields. 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,” commented Doug Shephard, director at Home.co.uk.
The worst letting locations in terms of gross rental yield are dominated by the most expensive parts of London (Knightsbridge, Charring 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%.
Top 10 Locations for 2-Bedroom Home Rental Yields
Manor Park 6.9%
Central London 6.5%
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