Look north for high yield buy-to-let properties
Some homes in the St Albans district could lose up to £1,120 a month in housing benefit - Credit: PA
The property market may be alive and well in the south east, but when it comes to high rental yields, investors would be wise to look north.
Research results released recently show the top 10 high yield buy-to-let hotspots in the UK – and neither Hertfordshire nor London make the list.
Leeds is top of the table, with a 10.79 per cent yield, closely followed by Bradford (10.33 per cent) and York (9.73 per cent).
Northern and Scottish investors have the best chance of realising a buy-to-let yield above the national average of 3.3 per cent.
The average 2.9 per cent buy-to-let yield for London postcodes is lower than any other UK city.
Sandbanks in Poole – the luxury peninsula many football legends call home – has the lowest buy-to-let yield of any UK postcode. So sports stars Tony Pulis, Graeme Souness, Harry and Jamie Redknapp shouldn’t be expecting much of a return if they choose to let their properties.
The study reveals a clear geographical divide between The North and The South, with northern regions coming out on top and areas in the south east showing particularly poorly.
Most Read
- 1 Suspected loan sharks arrested in Hemel Hempstead
- 2 Meet the artist behind The Queen's Platinum Jubilee mural in St Albans
- 3 Building company resurfaces bridleway to provide safe route for riders and walkers
- 4 St Albans shop showcasing small independents by renting out shelves
- 5 See inside this loft style apartment in a former hat factory
- 6 Foodies queue to try street food sourced, cooked and served in Herts
- 7 Train timetable shakeup due in St Albans and Watford from May 15
- 8 MoonWalk success for the St Albans cancer survivor and her Belgian Buns
- 9 Company of Ten's A Bunch of Amateurs production 'milks the comedy for all its worth' at the Abbey Theatre
- 10 Harpenden neighbours condemn plans for builders merchant next to residential properties
Nine of the 10 highest yielding districts are in Scotland and the North/Midlands. The 10 lowest yielding areas, with the exception of Edgbaston and Holland Park in Birmingham, are all in and around London, the south east and the south coast.
A spokesman for TotallyMoney.com, conducting the research, said: “With bank’s savings rates so disappointingly low, now could be the time to move your money into the increasingly competitive rental market.
“If you can take advantage of the soaring demand for rented accommodation, you could see a double-digit return on your investment if you know where to look.”