Top postcodes for buy to let investors revealed

Top postcodes for buy to let investors revealed

8:49 AM, 4th April 2024, About 2 months ago 4

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The best postcodes in Britain for buy to let investors seeking high rental yields have been revealed in a new study.

According to Lomond, the estate and letting agency group, its research has found the strongest rental yields – and some of those have increased by the biggest annual margin.

The study analysed property values and asking rents across the UK, revealing not only the current leaders but also the areas that have seen the largest year-on-year rises.

Nationally, the average rental yield is 4.5%, a significant rise from 4% last year.

‘Buy to let investment remains a lucrative endeavour’

Martin Elliot, Lomond’s chief executive of Yorkshire brands, said: “Despite the government’s best efforts, buy to let investment remains a lucrative endeavour and we’ve seen the average yield on offer increase across all regions of Britain over the last year, with the exception of Scotland where it has remained static.

“Of course, some areas remain more profitable than others and by breaking the market down at postcode level, you can gain a real insight into just where currently offers the strongest returns.”

He added: “While the top 10 postcodes boasting the strongest yields may be confined to the northern and midlands regions, that’s not to say that there isn’t an abundance of opportunities elsewhere if you know where to look.

“So, while the government may have attempted to lure more landlords away from the rental sector with a cut in capital gains tax, it remains a very good time to invest in rental market bricks and mortar.”

The South East offers the lowest average yield

Scotland boasts the strongest regional yield at 5.4%, followed by the North East and North West, while the South East offers the lowest average yield at 3.8%.

However, digging deeper, Lomond’s research pinpoints postcodes with far superior yields.

Leeds’ LS3 postcode reigns supreme, offering an impressive 12.8% average yield.

Bradford’s BD1 postcode boasts an 11.8% yield

Yorkshire dominates the top rankings, with Bradford’s BD1 postcode boasting an 11.8% yield and Leeds’ LS4 coming in seventh at 9.7%.

Manchester’s M14 postcode secures the third spot with a 11.6% yield, followed by Nottingham’s NG1 (10.8%) and NG7 (9.7%) postcodes.

Other top performers include Sunderland’s SR1 (10.5%), Scotland’s G67 (9.5%) and AB24 (9.3%), and Coventry’s CV1 (9.0%).

The LS3 postcode not only leads the yield table but has also seen the strongest annual increase, up a remarkable 5.6%, Lomond found.

Glasgow’s G4 postcode follows with a 2.7% rise, while Nottingham’s NG1 completes the top three with a 2.6% annual increase.


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Comments

Michael Booth

15:17 PM, 4th April 2024, About a month ago

Ts5 areas 80,000 to 120,000k property rent upto £600 pcm .

Cider Drinker

18:08 PM, 4th April 2024, About a month ago

Reply to the comment left by Michael Booth at 04/04/2024 - 15:17
At £100k for £600 pcm, you really need to hope you get a good tenant.

Reluctant Landlord

18:23 PM, 4th April 2024, About a month ago

is there REALLY actually anyone out there looking to buy more property to rent given the state of play with everything as is?

Even cash buyers at auctions are being cautious - there's very little return on some of the properties selling if they are going to rent so is this just another 'bigging up' of the estate agencies I wonder who are I expect seeing a downturn in business....?

Reluctant Landlord

18:27 PM, 4th April 2024, About a month ago

Reply to the comment left by Cider Drinker at 04/04/2024 - 18:08
most of these postcodes are in rather 'select' areas - meaning your tenant cohort is where the risk really is at.

I'd be looking at a bigger return to factor that in alone.... which clearly in turn is unachievable.

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