Which UK postcodes offer the best returns to landlords?

Mon 27 Nov 2017

New research has revealed the postcodes that deliver the greatest yields for buy-to-let investors, with Liverpool leading the way.

The study by TotallyMoney found yields in excess of 12 per cent can be enjoyed in the L7 area, with eight Liverpool postcodes making it into the top 25 across the country. With below-average house prices and relatively strong rents driven by high levels of demand, Liverpool is a favourable option for landlords.

However, it is far from the only location in which a large and healthy return can be made by investors. The survey of 2,700 postcodes in England, Scotland and Wales also highlighted areas of Manchester, Nottingham, Sheffield and Cardiff as being among the most lucrative buy-to-let spots.

Allison Thompson, managing director at property specialist Leaders, says: “Many UK cities offer incredibly high yields in excess of six per cent to buy-to-let investors, significantly outperforming other investment options such as stocks and shares.

“This research has identified a number of cities with large student populations – including Nottingham, Plymouth and Manchester – as offering particularly large yields. This should come as no surprise as students create high demand in many areas, making them a good place to invest.

“It is also worth noting that while the largest yields can often be found away from London and the south-east where initial purchase prices are typically lower, capital growth in more expensive areas will often generate a greater return in the long run.

“Landlords should discuss their needs with a local lettings expert who will recommend certain locations based on an investor’s ambitions, resources and preference of short, medium or long-term returns.”

Leaders operates more than 120 branches across England and its buy-to-let specialists are ready to support landlords as they seek the perfect investment. For more information or advice contact your local Leaders branch.