12^th Apr 2019

A London sales and letting agent's latest report shows which London and UK areas offer some of the highest BTL yields.

The agent studied data from a specialist information business supplying independent market data on the UK property investment and development sectors, and interrogated the stats on the basis of rental potential and average house prices of each postcode to calculate the best rental yield areas in the UK.

With the uncertainty surrounding the London market, the agent has found areas that achieve rental yields as good as 5%.

Their research has found East London's E6 and IG11 (Barking) postcodes achieve rental yield for landlords of 5%.

East London featured prominently in the top ten of the best buy-to-let postcodes in the capital as the RM8, RM9 and RM10 (Romford) postcodes are achieving rental yields of 4.9%.

Surprisingly the N18 postode is the only postcode outside of East London that appears in the top ten with a rental yield of 4.8%; the other postcodes that featured in the list was SE28, with E15 and EN3 completing the list.

The best postcode outside London was Liverpool's L7, with an average selling price of only £105,000 and an average rental yield of 10.7%. The nearby L6 postcode was just behind with an average rental yield of 10.4%.

The other cities throughout the UK that offer relatively high rental yields are Middlesbrough, Manchester, Bradford, Sunderland, Newcastle, Sheffield and Nottingham.

Marc von Grundherr, director of the sales and lettings agent, said: “The DNA of the London rental market is so complex that it pays to consider where to invest on the most granular level possible when looking at the buy-to-let market.”

He also commented that there are so many reasons for people to consider areas to invest in; however the major starting point for any investor has to be the average rental yield. He also said despite the rules, legislation and tax changes affecting the letting sector, there are still many 'honey pots' to guarantee an excellent return.

“Of course, London’s more prime postcodes are always a safe bet, attracting investment due to their prestigious image and positioning.

“While we may have seen some decline in price growth due to political uncertainty, they remain very much in demand from a rental point of view and so far, those with the budget to buy there, a return isn’t hard to come by.”

He added: “They also offer better capital growth than London’s peripherals and for those not completely dependent on yield but preferring to opt for more long-term growth, inner London is still the go-to place to invest in the capital’s buy-to-let market.”


News Archive »