Rental Yields – Chart of the top 50 areas in England and Wales
HSBC has released a report showing the average rental yields for the top Buy to Let hotspots of England and Wales based on data from the Office of National Statistics (ONS) and Land Registry.
This information broken down to specific areas is valuable for Landlords looking for future property investments, giving a base line picture of what rental yields and incomes are achievable.
The figures show that in some areas private landlords already own more than 1 in 4 properties of the housing stock with Southampton being the highest yielding area on average.
The Top 50 Buy to Let Hotspots by Rental Yield are:
| Location | Percentage of Rental Housing Stock | Average House Price | Average Rent (Monthly) | Average Rent (Annual) | Rental Yield (gross) |
| Southampton | 23.42% | £138,311 | £901 | £10,812 | 7.82% |
| Blackpool | 24.16% | £75,943 | £494 | £5,928 | 7.81% |
| Kingston upon Hull | 19.02% | £69,519 | £450 | 5400 | 7.77% |
| Manchester | 26.85% | £102,631 | £650 | £7,800 | 7.60% |
| Nottingham | 21.64% | £83,313 | £524 | 6288 | 7.55% |
| Coventry | 19.02% | £104,970 | £624 | 7488 | 7.13% |
| Slough | 23.07% | £171,581 | £975 | £11,700 | 6.82% |
| Oxford | 26.11% | £244,893 | £1,375 | £16,500 | 6.74% |
| Liverpool | 21.75% | £91,012 | £498 | 5976 | 6.57% |
| Portsmouth | 22.28% | £141,971 | £775 | 9300 | 6.55% |
| Cardiff | 20.32% | £140,882 | £750 | 9000 | 6.39% |
| Cambridge | 23.91% | £179,699 | £949 | £11,388 | 6.34% |
| Southwark | 22.22% | £401,405 | £2,058 | 24696 | 6.15% |
| Luton | 21.27% | £127,473 | £650 | 7800 | 6.12% |
| Newham | 32.62% | £229,141 | £1,126 | £13,512 | 5.90% |
| Leicester | 21.28% | £112,226 | £550 | 6600 | 5.88% |
| Bournemouth | 28.21% | £170,493 | £825 | £9,900 | 5.81% |
| Enfield | 21.18% | £261,163 | £1,200 | 14400 | 5.51% |
| Brighton and Hove | 28.04% | £229,622 | £1,049 | £12,588 | 5.48% |
| Brent | 28.82% | £337,723 | £1,517 | £18,204 | 5.39% |
| Forest Heath | 21.80% | £179,699 | £795 | 9540 | 5.31% |
| Torbay | 21.43% | £139,168 | £598 | 7176 | 5.16% |
| Southend-on-Sea | 20.72% | £152,171 | £650 | 7800 | 5.13% |
| Watford | 18.89% | £240,239 | £997 | 11964 | 4.98% |
| Bristol, City of | 22.11% | £169,425 | £695 | 8340 | 4.92% |
| Kingston upon Thames | 21.04% | £333,122 | £1,363 | 16356 | 4.91% |
| Reading | 24.68% | £196,309 | £795 | £9,540 | 4.86% |
| Hounslow | 22.23% | £285,927 | £1,148 | 13776 | 4.82% |
| Wandsworth | 30.02% | £428,987 | £1,694 | £20,328 | 4.74% |
| Lewisham | 22.97% | £283,031 | £1,101 | 13212 | 4.67% |
| Shepway | 20.17% | £181,399 | £695 | 8340 | 4.60% |
| Tower Hamlets | 30.84% | £364,296 | £1,387 | £16,644 | 4.57% |
| Eastbourne | 21.65% | £177,408 | £675 | 8100 | 4.57% |
| Harrow | 20.37% | £306,381 | £1,148 | 13776 | 4.50% |
| Croydon | 19.83% | £254,591 | £949 | 11388 | 4.47% |
| Exeter | 19.56% | £187,680 | £693 | 8316 | 4.43% |
| Isles of Scilly | 20.63% | £180,227 | £654 | 7848 | 4.35% |
| Lincoln | 19.36% | £119,076 | £429 | 5148 | 4.32% |
| Redbridge | 21.63% | £292,459 | £1,049 | 12588 | 4.30% |
| Cheltenham | 20.15% | £170,573 | £598 | 7176 | 4.21% |
| Ipswich | 18.75% | £153,163 | £524 | 6288 | 4.11% |
| Richmond upon Thames | 20.55% | £485,496 | £1,647 | 19764 | 4.07% |
| Westminster | 37.56% | £767,112 | £2,578 | £30,936 | 4.03% |
| Norwich | 20.10% | £179,699 | £598 | 7176 | 3.99% |
| Camden | 30.46% | £646,043 | £2,145 | £25,740 | 3.98% |
| Hastings | 27.19% | £177,408 | £550 | £6,600 | 3.72% |
| Haringey | 30.33% | £372,278 | £1,148 | £13,776 | 3.70% |
| Thanet | 21.96% | £181,399 | £524 | 6288 | 3.47% |
| Hammersmith and Fulham | 30.05% | £593,787 | £1,690 | £20,280 | 3.42% |
| Kensington and Chelsea | 33.97% | £1,090,943 | £3,033 | £36,396 | 3.34% |
Broken down by the top 10 London hotspots:
| Location | Average Property Price | Average Rent (Monthly) | Rental Yield (gross) |
| 1. Southwark | £401,405 | £2,058 | 6.15% |
| 2. Newham | £229,141 | £1,126 | 5.90% |
| 3. Enfield | £261,163 | £1,200 | 5.51% |
| 4. Brent | £337,723 | £1,517 | 5.39% |
| 5. Kingston upon Thames | £333,122 | £1,363 | 4.91% |
| 6. Hounslow | £285,927 | £1,148 | 4.82% |
| 7. Wandsworth | £428,987 | £1,694 | 4.74% |
| 8. Lewisham | £283,031 | £1,101 | 4.67% |
| 9. Tower Hamlets | £364,296 | £1,387 | 4.57% |
| 10. Harrow | £306,381 | £1,148 | 4.50% |
HSBC head of mortgages Peter Dockar said “house prices in the top-yielding locations, while still out of reach among many first time buyers are relatively affordable for landlords investing in property and the demand from young professionals has pushed up rents and driven up the returns. London is often seen as the haven of property investment with many believing the streets are paved with gold. However, while the highest rents in the country are an attractive draw for landlords, high house prices in the capital squeeze yields and limit the returns available. As a result returns can often be far more attractive in other areas so it certainly pays for landlords to do their research.”
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Boris's new London Rental Standard
Member Since January 2011 - Comments: 12216 - Articles: 1411
6:26 PM, 29th May 2014, About 12 years ago
Reply to the comment left by “Vanessa Warwick” at “29/05/2014 – 18:08“:
Tweet infographic above fixed 🙂
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Comments: 226
6:45 PM, 29th May 2014, About 12 years ago
Thanks Mark.
That’s a great tit bit of information for the thread about investing in London too. 🙂
https://www.property118.com/london-buy-let-still-makes-sense/65763/
Member Since February 2011 - Comments: 3454 - Articles: 286
7:25 PM, 29th May 2014, About 12 years ago
Reply to the comment left by “Ian Ringrose” at “29/05/2014 – 13:38“:
I agree Ian, The information is useful relative to how you use it and appreciate its limitations.
All information has relevance and some value.
Member Since July 2013 - Comments: 192 - Articles: 1
8:43 PM, 29th May 2014, About 12 years ago
Reply to the comment left by “MdeB ” at “29/05/2014 – 17:16“:
I totally agree and echo your thoughts on your preferred types of properties and the yield figures. My yields also hit the top of the table but in my case substitute the location with North Cambridgeshire, which is a million miles away in terms of price comparison with the nearest place on the table; Cambridge. The average price for a good flat in Cambridge City is over the stated price on the table and for that the rental figure is wrong so I’m baffled by it to be honest.
What is important, I believe, is that a good investor can look anywhere and at any time and so long as the purchase price is right i.e. BMV, a good yield will follow. If you do your homework correctly as well then long term growth will follow too.
Member Since June 2013 - Comments: 119 - Articles: 2
12:34 PM, 30th May 2014, About 12 years ago
Reply to the comment left by “Vanessa Warwick” at “29/05/2014 – 11:27“:
A journalist colleague contacted HSBC about certain inaccuracies in the data for example Oxford has just broken the 50% barrier in rented occupation (inc social housing) not the 26% they quote, and average house prices in Oxford are now £355k not £244k as quoted. HSBC told her that they realised there were some inaccuracies but they could not find data for Oxford so used Oxfordshire in stead!
A more accurate yield in Oxford would be between 3.8% and 4.8% which on the face of it is not worth a second glance……. however we are seeing more investment buying here than at any time in the last 10 years.
Member Since June 2013 - Comments: 119 - Articles: 2
12:46 PM, 30th May 2014, About 12 years ago
another “useful” infographic? http://www.allsop.co.uk/uploads/pdf/news/news_2153_.pdf
Member Since March 2014 - Comments: 30 - Articles: 1
4:06 PM, 30th May 2014, About 12 years ago
One look at the table and you can tell it’s a load of rubbish, HSBC can’t even get the title right. Over a 1,000 cities and towns in England alone and they reckon a 3.3% yield is a “Top 50” hotspot? It should be titled “50 random places with some random average prices, rents and yields”…
Fortunately the internet allows us to do our own research. Simply match up the rent and value of specific properties in the area you’re looking at, take a large enough sample and calculate your own yield data…
Member Since January 2011 - Comments: 12216 - Articles: 1411
4:14 PM, 30th May 2014, About 12 years ago
Reply to the comment left by “Simon Coppen” at “30/05/2014 – 16:06“:
Indeed, and both the calculator and the data required can all be found in one place >>> https://www.property118.com/property-search-tool/ 🙂
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