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The UK’s buy-to-let hotspots with the strongest yields

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12/05/2020
Which part of the UK is experiencing double-digit rental yields for landlords during the current crisis?
The UK’s buy-to-let hotspots with the strongest yields

The average UK rental yield sits at 3.5%, having dipped from the 3.6% registered in December, before the pandemic.

But some parts of the country are producing much higher rental yields for landlords, despite the lockdown, according to Howsy.

The online property management platform said that Bradford is home to the highest overall average yield at 10%, with Gwynedd (6.2%) and North Down (6%) also home to an average yield of 6% or more.

Glasgow, Liverpool, Preston, West Dunbartonshire, North Lanarkshire, Forest Heath and Manchester complete the top 10 buy-to-let yield hotspots.

At the other end of the scale Kensington and Chelsea, Malvern Hills and Chiltern are home to the UK’s worst average yields at just 2.3%.

Biggest risers

Some patches of the UK buy-to-let market have actually seen rental yields increase since November, despite the lockdown.

The largest rise has been in North West Leicestershire, where yields are up 1.4% during the crisis.

Arun, Corby and West Norfolk have also enjoyed an increase of 0.8% in rental yields, with North Dorset and Newark and Sherwood seeing a 0.7% uplift.

Kettering, Derby, Breckland and Falkirk also make the top 10 areas for rental yield uplifts.

Rhondda Cynon Taf, York, Gedling, Chiltern and the Vale of Glamorgan, however, have seen the largest declines in rental yield, of between 1%-3.5%.

CEO of Howsy, Calum Brannan, said: “Tenants still need to find rental properties and so it continues to be business as usual for many landlords and those agents who have adapted to a more digital mode of operations.

“There’s also still a large number of areas where potential and existing landlords can secure favourable yields much higher than the national average, with some areas still seeing an uplift in yields despite the spread of the Coronavirus.

“As the nationwide lockdown continues to drag on, there may be another silver lining for buy-to-let investors. Should the property market see prices fall, the cost of investing will be lower, boosting profit margins in a sector that has had it tough of late due to Government squeezes on profitability.”

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