One-beds for city rental yields

by Property118.com News Team

14:56 PM, 16th June 2020
About 6 months ago

One-beds for city rental yields

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One-beds for city rental yields

The latest research by, Howsy, has found that one-bed properties are now proving the best financial investment when it comes to buy to let rental yields across the UK’s major cities. Previous research from Howsy found that three was the magic number for rental yields, offering the highest return with a rental yield of 4.3%. While this has since increased to 5% now, the latest figures show that three-beds are no longer the best investment option.

In fact, both two and one-bed properties have leapfrogged the three-bed where rental yields are concerned, with the average two-bed providing a yield of 5.6%, while one-beds now averages a return of 6.2%.

When it comes to investing in a one-bed buy-to-let, Newcastle is your best bet, with the average yield coming in at 7.9%, closely followed by Glasgow (7.7%), Liverpool (7.1%) and Plymouth (7%), all home to yields of 7% or greater.

Newcastle and Glasgow also rank along with Belfast (6.9%) as the best spots for a two-bed buy-to-let investment, with Sheffield (6.7%) and Leeds (6.4%) also proving profitable.

While if you want to stick with the trusted three-bed, Glasgow again tops the table (6.9%) among Newcastle, Belfast, Leeds and Liverpool.

Founder and CEO of Howsy, Calum Brannan, commented:

“We’re seeing a lot of changes to traditional property trends across the sector and the latest seems to be the profitability of the three-bed buy-to-let.  While still a good investment, on the whole, tenants demand is growing for one and two-bed homes that provide them with a space of their own.

“This growing demand is leading to one and two-bed properties climbing the ranks of profitability due to their lower investment price point and higher demand pushing up rental prices.

“As the threat of the Coronavirus reduces, we will no doubt see this trend reverse as people begin to again feel comfortable about shared living and the better social lifestyle this brings.”

Rental yields – 1-bed
Location 1 Bedroom
Newcastle 7.9%
Glasgow 7.7%
Liverpool 7.1%
Plymouth 7.0%
Sheffield 6.7%
Leeds 6.6%
Leicester 6.6%
Nottingham 6.6%
Swansea 6.6%
Portsmouth 6.4%
Aberdeen 6.3%
Newport 6.2%
Manchester 6.0%
Cardiff 6.0%
Oxford 5.8%
Belfast 5.6%
Bournemouth 5.5%
Southampton 5.4%
Cambridge 5.4%
Birmingham 5.4%
Bristol 5.3%
Edinburgh 5.2%
London 4.7%
Average 6.2%
Rental yields – 2-bed
Location 2 Bedroom
Belfast 6.9%
Glasgow 6.9%
Newcastle 6.9%
Sheffield 6.7%
Leeds 6.4%
Liverpool 6.3%
Nottingham 6.0%
Swansea 5.9%
Portsmouth 5.8%
Aberdeen 5.5%
Manchester 5.5%
Birmingham 5.4%
Newport 5.4%
Leicester 5.3%
Cambridge 5.1%
Cardiff 5.1%
Plymouth 5.1%
Edinburgh 5.1%
Oxford 5.0%
Southampton 4.9%
Bristol 4.8%
London 4.2%
Bournemouth 4.0%
Average 5.6%
Rental yields – 3-bed
Location 3 Bedroom
Glasgow 6.9%
Newcastle 6.4%
Belfast 6.0%
Leeds 5.9%
Liverpool 5.7%
Aberdeen 5.6%
Manchester 5.5%
Swansea 5.3%
Edinburgh 5.0%
Nottingham 5.0%
Birmingham 5.0%
Sheffield 5.0%
Portsmouth 4.9%
Bristol 4.6%
Oxford 4.5%
Southampton 4.5%
Cardiff 4.5%
Newport 4.4%
Plymouth 4.3%
Leicester 4.1%
Cambridge 3.9%
London 3.9%
Bournemouth 3.0%
Average 5.0%
Rental yields – 4-bed
Location 4 Bedroom
Glasgow 6.9%
Edinburgh 6.4%
Leeds 4.8%
Newcastle 4.7%
Bristol 4.7%
Belfast 4.4%
Aberdeen 4.4%
Liverpool 4.4%
Birmingham 4.3%
Manchester 4.3%
Nottingham 4.0%
Southampton 3.9%
Portsmouth 3.9%
London 3.8%
Leicester 3.7%
Cardiff 3.7%
Sheffield 3.6%
Newport 3.6%
Oxford 3.5%
Cambridge 3.5%
Plymouth 3.4%
Swansea 2.9%
Bournemouth 1.8%
Average 4.1%
Rental yields – 5-bed+
Location 5 Bedroom
Glasgow 5.5%
Edinburgh 5.1%
Southampton 4.3%
Birmingham 4.2%
Nottingham 3.9%
Aberdeen 3.9%
Liverpool 3.8%
Manchester 3.5%
Bristol 3.4%
Newcastle 3.2%
Portsmouth 3.2%
Leeds 3.2%
Leicester 3.1%
Cambridge 3.1%
Sheffield 3.0%
Swansea 3.0%
Belfast 3.0%
Cardiff 3.0%
London 3.0%
Plymouth 2.6%
Newport 2.5%
Oxford 2.1%
Bournemouth 1.6%
Average 3.4%

 

  • Yields based on the average house price and rent for each location sourced from Home.co.uk

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