A new online tool claims to show where in the country landlords can get the best returns, and the north-west of England is coming out on top.
Developed by windows furnishing firm Thomas Sanderson, the ‘Buy-to-Let Hotspots’ tool can be used by prospective investors to see the rental yields in 2,463 locations across the UK. It uses online property listings to establish the average property selling prices and the average monthly rent for each postcode. It then divides the property price by the average rent to calculate the rental yield.
Users can search for specific postcodes or cities to see average yields and then manually compare areas against each other, to hone in on those that are most likely to give them the best financial returns.
Currently, the online tool has Liverpool as a rental property investment hotspot with the L6 postcode offering a yield of 14.99% and L1 with 13.62%. Sunderland isn’t far behind, with rental properties offering prospective landlords a 13.66% average rental yield.
While users cannot use the tool to create their own online comparisons between areas, it does offer up the ten most and ten least profitable locations.
Top ten most profitable postcodes
- L6 14.99%
- SR1 13.66%
- L1 13.62%
- TS2 13.6%
- TS14 13.19%
- PA42 13.05%
- B94 12.42%
- LE11 12.37%
- SK12 12.22%
- PO14 12.21%
Top ten least profitable postcodes
- WC1A 1.12%
- TQ8 1.16%
- 3N18 1.35%
- W1J 1.49%
- NE18 1.51%
- SG10 1.51%
- S72 1.63%
- YO16 1.63%
- TN38 1.65%
- OX26 1.65%
Greater insight into the rental property market across the UK as a whole will undoubtedly help landlords and prospective investors in their decision-making process, as they research and identify new buy-to-let opportunities.
