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Buy-to-let hotspots revealed: the UK postcodes with the best rental yields

2-minute read

Buy-to-let hotspots revealed: the UK postcodes with the best rental yields
Jade Wimbledon

Jade Wimbledon

18 October 2016

A new buy-to-let hotspot map shows that some postcodes are now offering landlords average rental yields of over 10 per cent, with Leeds postcode LS6 topping the list.

  • Best buy-to-let areas in London

North-south divide when it comes to rental yield

The rental yield research, published today by credit comparison website, reveals that nine of the 10 highest yielding postcodes are in the north of England, while the bottom 10 spots are occupied mainly by southern postcodes.

This backs up research from earlier in the year, which found that the UK's best buy-to-let areas were northern cities like Manchester and Liverpool.

<img src="" border="0" width="550" height="400">

Click image to see the full interactive graphic (via

The heatmap shows swathes of green around Liverpool, Sheffield, Leeds and York, representing average or above average rental yields, while chunks of the south west are coloured red.

Poole’s BH13 postcode, which includes ‘millionaire’s playground’ Sandbanks, is at the bottom of the list, offering a paltry average yield of 1.13 per cent.

Simply Business readers are already aware of the potential of northern rentals: a poll we ran in the summer showed that landlords believe the north west is the best place to invest in buy-to-let property.

Rental yield comes up trumps

Rental yield can be a good way of figuring out whether a buy-to-let investment is worthwhile, as it represents the amount of income a property generates annually, expressed as a percentage of the purchase price.

Over 70 per cent of landlords consider rental yield the most important factor in a buy-to-let investment decision, according to Simply Business research.

The average UK rental yield in the UK is currently around five per cent, so the top 10 postcodes in the list look particularly lucrative, all offering yields of over seven per cent. Meanwhile the bottom 10 postcodes - including four in London and two in Poole - all offer yields of under two per cent.

The data is based on an analysis of almost 138,000 rental properties and almost 304,000 properties marketed for sale online on the 1st of October.

Where are you looking to invest next? Tell us in the comments.

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