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.”