UK Buy-To-Let Yield Map 2024

What a difference a year makes!

Our first buy-to-let yield research project in 2022 was well received, along with our follow-up effort last year. For 2024, we’ve continued to dig even deeper to bring you the latest insights into the world of property investment. Using data from various industry sources, we’re in a position to offer a detailed analysis of the current state of play across the UK.

Right now, many landlords are carefully gauging their position in the market and keeping their options open. Inflation, wage stagnation, and rate rises have all had an impact on the sentiment around investment in the last 12 months.

However, while many predicted house prices would plummet, the market instead showed resilience.

Many borrowers were able to withstand the higher interest rates, thanks to a mix of lender support and stricter mortgage affordability stress testing (in place since 2014).

As a result, the volume of property sales decreased significantly as homeowners sought to ride out the interest rate storm, but the effect on prices was more limited. And with interest rates now easing, buy-to-let investors may start to feel more optimistic.

Regardless, whatever happens in 2024, it’s never been more important to weigh up the facts before choosing the right area for your next investment. This year’s report and yield map should help you do just that.

Before we begin, a note on the data: The “top 10” tables are ordered by the highest yield first and, if yields are equal, then by the highest price growth over the past 5 years (so areas with stronger capital appreciation rank first). The “worst 10” tables are flipped.

UK Regions By Yield

UK Region	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
Scotland	£215,454	18%	£1,022	6.18%
North East	£235,251	14%	£903	5.18%
Wales	£272,896	29%	£990	4.88%
North West	£249,514	20%	£945	4.83%
West Midlands	£301,246	21%	£1,043	4.57%
East Midlands	£252,569	19%	£884	4.46%
Greater London	£599,652	11%	£2,097	4.40%
South West	£377,046	24%	£1,280	4.34%
South East	£451,457	17%	£1,502	4.26%
East of England	£400,807	17%	£1,298	4.15%

The breadth of our data has allowed us to pull together a snapshot of rental yields by UK region.

Scotland (6.18%) is currently offering a far greater yield than any other region, with a lead of 1% more than the North East (5.18%) in second place. This is the second year in a row that Scotland has finished top of the regional leaderboard.

Elsewhere, Wales and the North West still offer good opportunities, far more so than the East of England and South West which rank lowest in terms of yield. That said, average house prices in the South West (£377,046) are considerably more accessible than in the South East (£451,467), a key factor for many investors.

Interestingly, this year’s data shows yields have improved across all regions – from an average of 4.29% to 4.79% in the last 12 months.

UK Region	Avg Rental Yield - January 2024	Avg Rental Yield - January 2023
Scotland	6.18%	5.70%
North East	5.18%	4.72%
Wales	4.88%	4.68%
North West	4.83%	4.38%
West Midlands	4.57%	4.11%
East Midlands	4.46%	4.10%
Greater London	4.40%	4.00%
South West	4.34%	3.78%
South East	4.26%	3.80%
East of England	4.15%	3.65%
Average	4.72%	4.29%

So, what’s happening?

In short, mortgage rates are starting to cool. The Bank of England base rate has stabilised at 5.25% and many expect it to fall in 2024. Lenders are reacting by lowering their interest rates following a peak in July 2023.

Lower rates mean lower monthly repayments for anyone on a standard variable-rate or tracker mortgage. Plus, many landlords upped their rental prices over the last two years to cover the higher interest rates.

As a result, there’s more wiggle room for profitable returns and, therefore, higher yields.

All in all, 2024 is set to be a much better market for buy-to-let investors.

Note: Unfortunately there is no data available for Northern Ireland.

Top 10 Towns & Cities By Yield

Town/City	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield	Change YoY
Middlesbrough	£151,370	8.17%	£618	7.33%	0.58%
Newcastle	£201,958	13.33%	£1,197	7.33%	1.51%
Nottingham	£228,497	24.86%	£1,311	7.30%	1.36%
Glasgow	£171,030	23.07%	£1,017	7.25%	0.33%
Dundee	£181,496	14.60%	£917	6.80%	0.23%
Manchester	£253,982	27.12%	£1,386	6.73%	1.02%
Aberdeen	£218,883	-15.80%	£819	6.48%	0.45%
Bristol	£361,096	23.87%	£1,997	6.44%	1.28%
Gateshead	£190,435	4.73%	£783	6.43%	1.27%
Gloucester	£356,080	27.42%	£1,404	6.30%	1.92%

A breakdown of rental yields by the UK’s towns and cities offers similar reading, as you’d expect, with locations in Scotland, the North East and North West dominating the top positions.

This year, Newcastle came out as the top city for rental yields. The local property market has shown resilience and strength in the past 12 months thanks to higher-than-average levels of activity compared to the rest of the UK.

The North East is set to be the UK’s next high-growth region. Newcastle, as the area’s biggest city, will be at the heart of it.

This is a market with serious potential for early movers.

Meanwhile, 40 miles south, Middlesbrough represents investors’ most cost-effective option. With the lowest average property prices in the top 10 and average rental yields equal to Newcastle, the only reason it falls behind its northeastern neighbour is the lower five-year price change.

Other results of note:

Glasgow came out on top last year, with a healthy 6.91% yield. Yields have since improved to 7.25%, but not enough to retain first place in 2024. Nonetheless, the city is still clearly an area that many investors will be considering over the coming years considering its large student population, famed nightlife, and excellent transport links.
Bristol and Gloucester are the only cities from the South to edge their way into the top 10. Bristol has some of the highest demand for rental properties in the country, with tenant waiting lists in the hundreds. This demand is causing rents to spike, resulting in higher yields. Meanwhile, Gloucester benefits as a relatively nearby and lower-cost alternative for tenants.

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	M14	Manchester	£230,285	41%	£2,427	12.00%
2	BD1	Bradford	£63,522	35%	£679	12.00%
3	NG7	Nottingham	£194,361	33%	£2,037	12.00%
4	NG1	Nottingham	£161,948	7%	£1,620	12.00%
5	SR1	Sunderland	£68,221	65%	£611	10.80%
6	NE4	Newcastle	£143,414	18%	£1,221	10.20%
7	G52	Glasgow	£108,633	29%	£886	9.80%
8	GL1	Gloucester	£209,203	18%	£1,670	9.60%
9	LS4	Leeds	£219,955	30%	£1,749	9.50%
10	NE6	Newcastle	£164,223	19%	£1,299	9.50%

Worst 10 Postcodes In The UK By Yield

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	HP9	Chiltern	£1,140,626	14%	£1,992	2.10%
2	W1	Westminster	£2,201,118	-9%	£4,284	2.30%
3	HR9	Hereford	£415,212	32%	£863	2.50%
4	CB11	Uttlesford	£603,652	5%	£1,306	2.60%
5	NP25	Monmouthshire	£407,324	29%	£876	2.60%
6	TQ7	South Hams	£463,226	32%	£1,009	2.60%
7	AL5	St Albans	£772,823	11%	£1,759	2.70%
8	CM4	Brentwood	£714,912	19%	£1,587	2.70%
9	IP22	South Norfolk	£403,566	23%	£894	2.70%
10	CH48	Wirral	£432,990	44%	£965	2.70%

HP9, covering Beaconsfield in Buckinghamshire, takes the crown (or should we say the wooden spoon) as the UK’s worst postcode for rental yield in 2024. Although, as one of the wealthiest areas of the country, we doubt the residents care all too much.

W1 in Westminster continues to perform poorly, moving from sixth to second place in this year’s research whilst maintaining a similar yield: 2.3% vs 2.4% last year.

In areas with high property prices, such as Westminster (W1) and Beaconsfield (HP9), even substantial rental incomes can result in lower yields due to the high initial cost. This is common in affluent areas where property values are significantly elevated.

Instead, properties in these areas tend to provide investment value through capital appreciation over time rather than immediate rental income. Even a small percentage increase in value can net a large return.

In that regard, HR9 (Hereford), TQ7 (South Hams), and CH48 (Wirral) stand out for their significant 5-year price growth (32%, 32%, and 44%, respectively).

London

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	RM10	Barking and Dagenham	£346,176	22%	£1,787	6.20%
2	SE28	Greenwich	£330,270	10%	£1,709	6.20%
4	RM9	Barking and Dagenham	£371,486	20%	£1,878	6.10%
3	IG11	Barking and Dagenham	£342,239	9%	£1,748	6.10%
5	DA10	Dartford	£360,515	-1%	£1,793	6.00%
6	E3	Tower Hamlets	£428,002	-5%	£2,132	6.00%
7	E13	Newham	£397,375	9%	£1,993	6.00%
8	SE17	Southwark	£523,144	-14%	£2,553	5.90%
9	DA9	Dartford	£302,920	8%	£1,455	5.80%
10	DA8	Bexley	£335,017	16%	£1,582	5.70%

Worst 10 Postcodes By Yield

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	W1	Westminster	£2,201,118	-9%	£4,284	2.30%
2	WC2	Covent Garden	£1,644,973	-27%	£3,755	2.70%
3	N2	Barnet	£1,007,447	23%	£2,247	2.70%
4	SW3	Kensington and Chelsea	£1,863,187	-13%	£4,334	2.80%
5	NW11	Barnet	£978,326	-2%	£2,548	3.10%
6	KT17	Epsom and Ewell	£584,383	5%	£1,521	3.10%
7	SW14	Richmond upon Thames	£967,168	7%	£2,514	3.10%
8	HA6	Hillingdon	£740,355	10%	£1,897	3.10%
9	EN6	Hertsmere	£658,322	15%	£1,686	3.10%
10	W8	Kensington and Chelsea	£1,770,455	-1%	£4,739	3.20%

Even though London will likely never offer the best possible rental yields for buy-to-let landlords, the charm of the city and sheer scale of demand is still enough to make it a hotspot for UK investment.

Positively, individual postcodes are performing much better year-on-year. Seven of the top ten are generating yields equal to or above 6%, compared to just one last year.

The top spot in 2024 – RM10 in Dagenham (6.2%) – edges out SE28 in Greenwich by virtue of property value growth over the past five years. But the competition is close run in London – there are several postcodes across Barking and Dagenham, Dartford, Newham, and Tower Hamlets all offering good opportunities.

At the other end of the spectrum, W1 in Westminster (2.3%) currently offers the worst value for money on a buy-to-let in London. Property prices in W1 have also decreased by 9% in the past five years, a common theme across several of London’s highest-value postcodes as the top end of the market is hit by the surge in interest rates.

The Midlands

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	NG7	Nottingham	£194,361	33%	£2,037	12.00%
2	NG1	Nottingham	£161,948	7%	£1,620	12.00%
3	B29	Birmingham	£268,246	28%	£1,976	8.80%
4	DN31	Grimsby	£78,333	21%	£549	8.40%
5	CV1	Coventry	£169,789	16%	£1,142	8.10%
6	CV4	Coventry	£255,237	14%	£1,707	8.00%
7	B5	Birmingham	£202,011	23%	£1,178	7.00%
8	ST1	Staffordshire	£120,174	7%	£692	6.90%
9	B18	Birmingham	£206,243	-2%	£1,187	6.90%
10	B12	Birmingham	£195,189	59%	£1,093	6.70%

Worst 10 Postcodes By Yield

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	HR9	Hereford	£415,212	32%	£863	2.50%
2	WV16	Shropshire	£368,446	15%	£844	2.70%
3	S7	Sheffield	£338,570	16%	£815	2.90%
4	WR2	Worcester	£331,444	13%	£830	3.00%
5	WS14	Lichfield	£420,048	15%	£1,060	3.00%
6	DN22	Bassetlaw	£279,705	11%	£715	3.10%
7	ST14	Staffordshire	£323,499	17%	£841	3.10%
8	LE17	Leicester	£394,905	21%	£1,011	3.10%
9	LE15	Rutland	£400,694	28%	£1,040	3.10%
10	DY9	Dudley	£376,109	11%	£998	3.20%

Nottingham’s NG7 is the top postcode in the Midlands for rental yields, boasting an impressive 12% return. NG7, known for its student and professional communities, has seen a notable 33% rise in property prices over the last five years. It offers a brilliant balance of capital appreciation and rental income for investors.

Closely following is NG1, another Nottingham postcode, matching NG7’s yield of 12% but with a more modest 7% price growth. This area’s appeal is bolstered by its central location and urban lifestyle, attracting a diverse range of tenants.

Birmingham has four postcodes in the top ten: B29, B5, B18, and B12. The city has become a popular alternative to London in recent years, attracting swathes of young professionals. Combined with a large domestic and international student population, demand for good-quality, central properties outstrips supply – boosting rental prices.

Grimsby’s DN31 makes a surprising entry with an 8.4% yield, supported by a 21% price increase. This area’s affordability and ongoing developments make it an interesting prospect for budget-conscious investors.

The North

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	M14	Manchester	£230,285	41%	£2,427	12.00%
2	BD1	Bradford	£63,522	35%	£679	12.00%
3	SR1	Sunderland	£68,221	65%	£611	10.80%
4	NE4	Newcastle	£143,414	18%	£1,221	10.20%
5	LS4	Leeds	£219,955	30%	£1,749	9.50%
6	NE6	Newcastle	£164,223	19%	£1,299	9.50%
7	TS3	Middlesbrough	£79,185	4%	£600	9.10%
8	LS2	Leeds	£167,637	24%	£1,258	9.00%
9	NE1	Newcastle	£162,713	5%	£1,157	8.50%
10	LS9	Leeds	£144,531	15%	£997	8.30%

Worst 10 Postcodes By Yield

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	NE20	Northumberland	£542,666	18%	£1,225	2.70%
2	CH48	Wirral	£432,990	44%	£965	2.70%
3	L39	West Lancashire	£340,681	20%	£808	2.80%
4	CW6	Cheshire West and Chester	£560,262	23%	£1,323	2.80%
5	TS15	Stockton-on-Tees	£361,482	19%	£860	2.90%
6	SK17	Derbyshire Dales	£309,886	26%	£780	3.00%
7	LA9	South Lakeland	£319,754	25%	£821	3.10%
8	CW11	Cheshire East	£331,711	5%	£871	3.20%
9	CW5	Cheshire East	£376,349	9%	£990	3.20%
10	CH64	Cheshire West and Chester	£365,883	24%	£979	3.20%

As we’ve discussed, M14 in Manchester is at the top of the tree as the postcode with the best-performing yield anywhere in the UK.

Newcastle’s NE1, NE4, and NE6 have risen sharply up the ranking since 2023, each offering exceptional yields. If you’re an experienced investor looking for diversification or you’re a first-timer with a limited budget, these postcodes are well worth consideration.

Leeds is also well represented in the top ten: LS2, LS4, and LS9 all taking strong positions. The city is popular with investors due to its huge student population and nightlife.

Meanwhile, buy-to-let investors should steer clear of Cheshire and the Wirral. Five of the lowest-yielding postcodes in the North West come from these neighbouring areas: CW6, CW11, CW5, CH48, and CH64.

Wales

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	SA1	Swansea	£157,087	18%	£1,205	9.20%
2	CF37	Rhondda Cynon Taf	£160,786	25%	£1,132	8.50%
3	CF24	Cardiff	£233,326	30%	£1,415	7.30%
4	CF10	Cardiff	£186,458	16%	£1,134	7.30%
5	LL57	Gwynedd	£214,400	9%	£1,268	7.10%
6	CF45	Rhondda Cynon Taf	£125,001	16%	£700	6.70%
7	NP13	Blaenau Gwent	£129,506	28%	£697	6.50%
8	NP22	Blaenau Gwent	£131,822	48%	£638	5.80%
9	SA2	Swansea	£300,777	22%	£1,463	5.80%
10	CF3	Cardiff	£278,162	20%	£1,275	5.50%

Worst 10 Postcodes By Yield

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	NP25	Monmouthshire	£407,324	29%	£876	2.60%
2	SY4	Shropshire	£358,297	15%	£859	2.90%
3	SY8	Shropshire	£370,571	18%	£916	3.00%
4	SY2	Shropshire	£323,890	22%	£868	3.20%
5	SY3	Shropshire	£328,959	26%	£896	3.30%
6	SY5	Shropshire	£383,971	27%	£1,046	3.30%
7	SA3	Swansea	£425,254	20%	£1,274	3.60%
8	NP7	Monmouthshire	£365,406	25%	£1,137	3.70%
9	CF64	Vale of Glamorgan	£382,838	21%	£1,226	3.80%
10	CF23	Cardiff	£367,615	22%	£1,180	3.90%

Wales has been attracting more and more investment in recent years – and looking at postcodes such as SA1 in Swansea and CF37 in Rhondda Cynon Taf, it’s easy to see why. Both areas offer exemplary yields of more than 8.5% and relatively low barriers to entry considering the average property prices are roughly £160,000.

In terms of worst postcodes for buy-to-let yields in Wales, NP25 in Monmouthshire has the lowest yields at just 2.6%, but Shropshire dominates the top ten with five postcodes yielding between 2.9-3.3%.

Scotland

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	G52	Glasgow	£108,633	29%	£886	9.80%
2	AB24	Aberdeen	£95,658	-32%	£712	8.90%
3	G4	Glasgow	£158,937	9%	£1,150	8.70%
4	DD4	Dundee	£139,519	14%	£984	8.50%
5	AB11	Aberdeen	£95,839	-21%	£672	8.40%
6	G5	Glasgow	£164,998	19%	£1,137	8.30%
7	G2	Glasgow	£167,000	2%	£1,147	8.20%
8	G1	Glasgow	£168,652	4%	£1,106	7.90%
9	G31	Glasgow	£145,950	32%	£952	7.80%
10	G11	Glasgow	£184,275	17%	£1,173	7.60%

Worst 10 Postcodes By Yield

Position	Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
1	G84	Argyll and Bute	£242,440	32%	£749	3.70%
2	EH10	Edinburgh	£437,296	10%	£1,435	3.90%
3	EH9	Edinburgh	£431,330	17%	£1,416	3.90%
4	AB21	Aberdeen	£243,484	1%	£896	4.40%
5	KA3	East Ayrshire	£192,869	12%	£702	4.40%
6	G75	South Lanarkshire	£198,964	25%	£735	4.40%
7	IV2	Highland	£236,332	17%	£885	4.50%
8	EH12	Edinburgh	£366,682	19%	£1,412	4.60%
9	ML3	South Lanarkshire	£193,735	6%	£754	4.70%
10	G33	Glasgow	£236,455	9%	£926	4.70%

Glasgow postcodes account for 7 of the top 10 best yields in Scotland, so it’s easy to see why investors are beginning to flock north of the border in search of exceptional deals.

Compared with the rest of the UK, the worst yield column certainly isn’t as bad either. Landlords can still secure an average return of 4.7% in Glasgow’s G33 for instance, which would likely sit on the edge of profitability.

Takeaways

Scotland and the North East are currently offering the best yields in the UK, putting forward a strong investment case – especially when you consider the highly affordable prices and strong property value growth.

We’re expecting to see more buy-to-let investors casting their attention towards these areas over 2024 as a result.

But despite higher prices, the North West shouldn’t be ruled out either.

The region has consistently proved a reliable source of returns for investors over the past decade. Manchester’s M14, the strongest-performing postcode in the UK, is a leading light.

Regardless, the top-performing regions, whether it’s Newcastle or Nottingham, Manchester or Middlesbrough, share similar characteristics. Each has a distinct culture, large populations of students and young professionals, intense investment and regeneration plans, and thriving social scenes.

In short, they are places people want to live and work in, which makes them a great pick for UK buy-to-let landlords in 2024.

As you navigate through the year, keep these factors in mind and you can’t go far wrong.

We hope you’ve found this year’s research useful. If you’d like to discuss your buy-to-let property investment plans with one of our advisors then we’d be happy to talk through your best options and answer any questions you have. Use the form below to submit your details and we’ll be in touch!

About The Data

We collected and analysed property market data from over 2,400 postcode areas across England, Scotland and Wales.

Data source: propertydata.co.uk

Yield Maps

Looking for more property investment advice?

Get in touch with our friendly team today to discuss your situation and start laying out a plan to secure maximum return on investment. Feel free to contact us using the form below.

Looking for more property investment advice?

Get in touch with our friendly team today to discuss your situation and start laying out a plan to secure maximum return on investment. Feel free to contact us using the form below.