Zoopla has revealed its top 10 hotspots for buy to let investors seeking high rental yields.
The analysis is based on rental returns and capital appreciation for a notional two bed property in the year to August 15.
Middlesbrough emerges with England’s highest yields, offering a gross annual 7.7 per cent thanks to the combination of low property prices and steady median monthly rent of £450.
Scotland features heavily in the top 10, with East Ayrshire and North Ayrshire both providing investors yields of 7.7 per cent closely followed by Glasgow and Stirling at 7.6 and 7.5 per cent respectively.
An ‘investor triangle’ in the North East - with Sunderland, County Durham and Hartlepool at the points - offers yields of 7.3 and 7.4 per cent.
When it comes to London, higher house prices have a knock-on effect on yields that investors can secure. The highest yield is in Barking and Dagenham (5.3 per cent) and then both Newham and Havering on 4.9 per cent.
Yields were lowest in the City of London at 3.1 per cent, despite average monthly rents of £2,598. This was followed by Kensington and Chelsea, and the City of Westminster.
The full Zoopla table is below.
istrict
|
Gross yield (%)
|
2 bed rent (Median, £PCM)
|
2 bed capital value
|
Middlesbrough
|
7.7%
|
£450
|
£69,950
|
East Ayrshire
|
7.7%
|
£450
|
£69,995
|
North Ayrshire
|
7.7%
|
£450
|
£70,000
|
Inverclyde
|
7.7%
|
£476
|
£74,500
|
Glasgow
|
7.6%
|
£792
|
£125,000
|
Stirling
|
7.5%
|
£749
|
£120,000
|
Sunderland
|
7.4%
|
£493
|
£80,000
|
County Durham
|
7.4%
|
£428
|
£69,500
|
Nottingham
|
7.3%
|
£792
|
£130,000
|
Hartlepool
|
7.3%
|
£424
|
£69,950
|
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