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Rental Yields – Chart of the top 50 areas in England and Wales Landlord News, Latest Articles, Property News

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.”rental yields


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