Highest yields for property investors who choose this location type


It’s no secret that location is one of the most important considerations for property investors. But one location type in particular comes out on top for yields.

When choosing where to invest in property, there are many aspects to factor in. Which part of the country to invest in might be the first step, whether it be London, the south-east or the north-west.

A new study has now come out which looks at three specific location types for property investment. These are coastal areas, countryside locations and cities. The research, by Howsy, shows that these are the top-yielding location types compared to other areas, such as towns and suburbs.

The best location

Investing in property in a UK city is likely to give you the biggest yields, according to Howsy. Cities can attract yields of an average 5% for investors, which is comfortably above the 3.56% UK average.

The second best location type was the countryside, where average yields can be up to 3.72%. This was followed by seaside areas, with an average top investment yield of 3.59%.

Calum Brannan, founder and chief executive officer of Howsy, says: “Cities are typically the preferred place for a buy-to-let landlord when it comes to investing, largely due to the higher level of rental income and the consistent demand for rental homes. So it comes as no surprise that they are home to the highest yields overall.”

“That said, the coast and country can also prove to be very lucrative and as the figures show, there are plenty of options across both that offer yields way above the national average.”

City hotspots in the UK

For buy-to-let landlords, cities have a number of major benefits. They tend to see the highest rental demand, particularly among young professional tenants who want to live close to jobs, travel options and a social scene. Cities are also a favourite among new graduates who either want to stay on in their university city, or relocate to another city for employment.

Rents in city centres, due to the strong demand, can be higher than surrounding areas. City buy-to-let properties also tend to be apartments, which may come at a lower cost than larger properties elsewhere. Coupled with the higher rents they can attract, it is a popular property type among investors.

With plenty of major new developments popping up across the UK’s major cities, there are several options. Many property investors opt to buy off-plan new-builds as they can often access competitive starting prices and great yields. They also come with the added incentive for tenants to live in a brand new, well-located rental property.

The build-to-rent market, which involves purpose-built rental accommodation normally in city centres, is booming. London is the hotspot for this, followed by Birmingham, and there are hundreds of build-to-rent projects underway in places like Manchester, Liverpool, Leeds, Sheffield and Nottingham.

Investors can spread their portfolios

Today’s property investors are less likely to stick to just one location close to where they live, if they’re UK-based. Most can see the benefits of considering multiple locations for the best returns.

Calum Brannan adds: “While traditionally geographical distance may have made this tricky, the technological disruption of the buy-to-let sector has changed the way we invest and manage in bricks and mortar. With online and hybrid platforms allowing easy management from your front room, there’s no reason why you can’t invest the length and breadth of the UK.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

landlord hmo

Highest yields for property investors who choose this location type


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.