The Highest Rental Yields UK – Where To Invest
There’s no better time to invest in buy-to-let properties in the UK. The North West of England boasts a 6-7% average rental yield, and the South with an average of 5%, according to Zoopla.
Although some UK rental yields are slowing down in areas such as London and the South East, there is still a steady, slow increase. But for the best rental yields in the UK, the North is where you want to focus since house prices are falling and rents are increasing.
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Why Are Rental Yields UK Important?
Rental yields ensure potential landlords that their investment is worthwhile and profitable. The higher the percentage of the rental yield, the better your investment will be; we are looking for more affordable properties with a higher average rental price.
This is why our developments, such as Urban Green in Manchester and The Exchange in Preston, have done so well, with an average rental yield of 6.9%.
Of course, the highest rental yields in the UK aren’t the only things to consider when investing; future demand and capital growth are just as important.
Top 8 Cities With The Best Rental Yields UK
To help you discover the best rental yields in the UK, we’ve gathered rental yield data and found the best cities in the UK that are worth considering if you’re looking to invest in developments.
1. Manchester
Boasting some of the best rental yields in the UK, Manchester has the highest rental yield in the whole of the UK, with the M14 postcode reaching a rental yield of 12%. ¹ With lots of new developments on the rise due to an increase in demand, Manchester doesn’t seem to be slowing down, fuelling the rental market’s growth even more.
Check out some of our successful developments in Manchester, such as Berkeley Square and Urban Green.
2. Preston
Preston has a high rental yield of 6.2% in the PR1 postcode ² and is a strong property investment location due to its high employment rate and development plans such as the City Deal with further development in the city planned over the coming years, boosting jobs and the local economy.
Our development, Bishopsgate Gardens, has an average rental yield of 6.9% and a predicted 20.4% price growth forecast.
3. Salford
Salford near Manchester is another property investment hotspot and has a growing rental demand due to the easy and convenient commuting distance to Manchester.
With an average rental yield of 5-7% and named as one of the second fastest cities in the UK to sell, having an average 23-day turnaround, we can see why investing in Salford is popular.
4. Liverpool
Liverpool is one of the most sought-after locations for businesses and education. With an average rental yield of 7.80% in its L4 postcode and 63,0000 higher education enrollments each year ³, there is a high demand for rentals, especially for student accommodation.
Home to high-value business sectors, big events, and regeneration projects, Liverpool is expected to grow even more over the coming years.
5. Sunderland
Sunderland has an average yield rate of up to 8.5%, which is way above the average rental yields UK, making it an attractive investment opportunity.⁴
The affordability of properties in Sunderland, with the average property price of £76,000 in the city centre ⁵, combined with the high rental yields and growth of the city, makes this an area of opportunity not to be missed.
6. Dundee
Dundee’s rental yield comes in at around 7.9%, ⁶ making it a lucrative investment opportunity for buy-to-let properties.
With exciting regeneration projects such as the Waterfront, job opportunities, a thriving student hub due to the University of Dundee, and excellent transport links to Edinburgh, this city is starting to attract a lot of investors.
7. Newcastle
The average rental yield in Newcastle is 6.5%, ranked as the 8th largest city in the UK. Apart from having the highest rental yields, the city has many young professionals looking to start up businesses and a great graduation retention rate.
8. Glasgow
Glasgow, like Dundee, has a very high rental yield of up to 9.3% in postcodes such as G52. Property prices tend to be lower here than in Edinburgh, and with the Glasgow Regional City Deal in place, we expect to see thousands more jobs created, improved public transport, and more.
Investing In The North West Of England With The Heaton Group
The North West of England has by far the best rental yields in the UK.
At The Heaton Group, we offer property investment opportunities up North with previous successful developments in Manchester and Preston to help build your investment portfolio, whether you’re interested in off-plan development or buy-to-let properties.
Contact us today to find out more information.
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