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.
Top 10 Postcodes In The UK By Yield
| 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% |
For 2024, M14 in Manchester takes the title as the postcode with the most lucrative rental yield in the UK – at a whopping 12%.
Despite three other postcodes generating the same yield, M14 takes the top spot thanks to the whopping 41% price growth over the past five years. The postcode, covering Fallowfield and Rusholme, has a student-heavy population but also attracts interest from young professionals looking for an alternative to the in-demand suburbs of Chorlton and Didsbury.
Last year’s top postcode, BD1 in Bradford, has been knocked down to second, but it still represents an excellent, low-price option for investors (along with Sunderland’s SR1).
The previous section showed that Newcastle, as a city, has the highest average rental yields in the UK so it’s no surprise to find two of its postcodes entering the top 10 – NE4 and NE6.
For those looking elsewhere, NG7/NG1 in Nottingham, G52 in Glasgow, GL1 in Gloucester, and LS4 in Leeds are all well worth consideration, with yields ranging from 9.5% – 12% and prices to suit all budgets.
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
Top 10 Postcodes By Yield
| 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
Top 10 Postcodes By Yield
| 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
Top 10 Postcodes By Yield
| 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
Top 10 Postcodes By Yield
| 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
Top 10 Postcodes By Yield
| 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
