Bradford ranks highest for rental yields providing an 11.6% return, followed by Dundee at 10.1% and in third place, Sunderland at 9.9%, according to new research from PropertyData and Sequre Property Investment.
The research found that the North, Wales and Scotland offer buy-to-let investors the best rental yields across the UK, ranging from 7.3% – 11.6%
Top Ten Regions in the UK for BTL Yields
| Region | Average Price | Rental Yield |
| Bradford (BD1) | £57,000 | 11.6% |
| Dundee (DD1) | £157,000 | 10.1% |
| Sunderland (SR1) | £70,000 | 9.9% |
| Leeds (LS4) | £206,000 | 8.7% |
| Cardiff (CF37) | £155,000 | 8.4% |
| Aberdeen (AB11) | £101,000 | 8.2% |
| Glasgow (G2) | £158,000 | 8.1% |
| Swansea (SA1) | £149,000 | 7.8% |
| Middlesbrough (TS1) | £86,000 | 7.4% |
| Newcastle (NE6) | £267,000 | 7.3% |
Buy-to-let investors yielded an average of 5.7% on their property investments in the first quarter of 2022, down from 6.3% in the first three months of 2021, according to data collected by Starling Bank-owned lender Fleet Mortgages.
However, Sequre Property Investment achieved yields averaging 8.71% on their property investments across the UK in the first quarter of 2022, providing above-market average returns.
Daniel Jackson, sales director of Sequre Property Investment, said: “For the seventh consecutive quarter, the North East of England recorded the top rental yield across the region at 11.9%, compared to Greater London, which generates nearly half this yield, at 4.6%
“This trend is likely to continue with house prices predicted to rise steadily through 2022 and rental yields achieving more than 8% across Leeds, Sunderland and Bradford, making these regions highly profitable for investors.
“For landlords it is all about yield – how much rental income versus the price they pay for the property. This has led to a shift away from London and the South East, where historic higher house prices have outweighed the rental income available.
“This has been exacerbated by the Covid crisis that has hit rental income in London in particular.
“So, it’s not surprising to see in these figures house prices have been rising in the North East, North West and Yorkshire in particular as investors chase those higher yields.
“At the moment, these areas still look attractive for landlords as they are providing the rental income and the opportunity for capital appreciation, which they can’t achieve in their local areas.”
