Top 12 UK Rental Yield Hotspots

Are you planning on investing in rental properties? The location you chose to invest in could make all the difference. Looking at the average rental yield for an area can help you calculate whether the property’s sale price is worth the potential income from renting it out. Working out the rental yield of a property is simple using this formula:

Table of Contents

Annual rent / property price x 100 = gross rental yield (%)

Here are the top 12 UK locations that offer the highest rental yields. All information is based on analysis from Zoopla.

1. Sunderland

Average gross rental yield: 8.96%

Average monthly rent: £626

Average buy-to-let property price: £83,842

Sunderland is a port city in Tyne and Wear in the north of England. The city has benefitted from a series of large regeneration projects since the 1980s which transformed former shipyards into residential and commercial buildings including leisure facilities. Sunderland is near Northumberland National Park, the North Pennines National Landscape and several beaches, making it a potentially good location for holiday lets.

2. Aberdeen

Average gross rental yield: 8.03%

Average monthly rent: £689

Average buy-to-let property price: £102,920

Located in northeast Scotland, the port city of Aberdeen includes the University of Aberdeen which is in the top 20 UK universities, an international airport, and a lucrative oil and gas industry thanks to its proximity to North Sea oil and gas fields. Rental values are high in the city thanks to the yearly influx of students and workers in the oil and gas industry. Aberdeen also boasts a high standard of living and strong rental yields thanks to the relatively low property prices.

3. Burnley

Average gross rental yield: 8%

Average monthly rent: £566

Average buy-to-let property price: £84,869

Burnley in Lancashire was awarded the ‘Most Enterprising Area in the UK’ award from the UK government in 2013. This was thanks to a series of regeneration schemes including an aerospace supply hub, and the resurgence of the area’s manufacturing industry.

The town offers transport links to the nearby cities of Manchester and Leeds, including a direct train straight to Manchester.

4. Dundee

Average gross rental yield: 7.96%

Average monthly rent: £774

Average buy-to-let property price: £116,690

A coastal city of the Firth of Tay estuary in Scotland, Dundee is a growing hub for the biomedical, biotechnology, software and digital industries. It is currently enjoying a £1 billion regeneration of the waterfront including several museums and other attractions. This along with good transport links to Edinburgh and Glasgow enhances Dundee as a potential location for investment.

5. Glasgow

Average gross rental yield: 7.95%

Average monthly rent: £951

Average buy-to-let property price: £143,617

Glasgow is a metropolitan hub and is home to several universities as well as 28% of all Scottish businesses. The largest city in Scotland, Glasgow has a growing population of 1.6 million and has one of the largest economies in the UK. There is high demand for rental properties in the city as well as a rich history and varied architectural styles, making it a popular investment location.

6. Middlesborough

Average gross rental yield: 7.92%

Average monthly rent: £613

Average buy-to-let property price: £92,862

Middlesbrough in North Yorkshire has a large population of students from Teesside University and young professionals. It benefits from regeneration projects including the Tees Valley Enterprise Zone and TeesAMP, creating more jobs, especially in the technology innovation and digital industries. This combined with its low property prices makes it an ideal location for property investment.

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7. Blackburn

Average gross rental yield: 7.52%

Average monthly rent: £661

Average buy-to-let property price: £105,460

Just north of Manchester, Blackburn has a strong industrial heritage which now houses many diverse industries such as manufacturing, healthcare, retail, and professional services. Blackburn is well-connected by the M65 and M6 motorways and trains run to Manchester, Leeds, York and other locations. Blackburn is close to the Forest of Bowland and West Pennine Moors, as well as being home to a range of cultural and leisure attractions.

8. Hull

Average gross rental yield: 7.45%

Average monthly rent: £612

Average buy-to-let property price: £98,617

Named the UK City of Culture award in 2017, the former fishing port town of Hull is home to the University of Hull and The Hull York Medical School. It has undergone many regeneration projects, especially in its city centre and waterfront areas. Former industrial sites are now sought-after residential and commercial spaces, which add to the city’s appeal for property investors.

9. Newcastle

Average gross rental yield: 7.45%

Average monthly rent: £833

Average buy-to-let property price: £134,245

This fast-growing city in the Northeast attracts 28,000 students each year as well as young professionals. Newcastle is a centre of education, healthcare, and digital technology and benefits from a vibrant cultural scene. This combined with the regeneration of the Quayside and other improvements make Newcastle a rewarding city to invest in property.

10. Liverpool

Average gross rental yield: 7.44%

Average monthly rent: £801

Average buy-to-let property price: £129,172

Liverpool boasts a rich history and culture and has experienced vast regeneration and growth within the past 20 years. This city is experiencing high property demand thanks to the chemicals, food processing, business and financial services, retail, tourism and motor manufacturing industries. Liverpool also welcomes 42 million tourists every year plus 50,000 students to the University of Liverpool, Liverpool John Moores University (LJMU) and Liverpool Hope University.

11. Stoke

Average gross rental yield: 7.38%

Average monthly rent: £735

Average buy-to-let property price: £119,562

Also known as Stoke-on-Trent, this Staffordshire city was known for ceramics manufacturing, and is now one of the most popular locations for new businesses. It benefits from a convenient location between Birmingham, Manchester and Sheffield, and is surrounded by the picturesque and affluent Peak District and South Cheshire. Stoke boasts a variety of new builds and period properties dating back to its historical ceramics industry and relatively low property prices, making it ideal for property investors.

12. Grimsby

Average gross rental yield: 7.16%

Average monthly rent: £608

Average buy-to-let property price: £101,883

This port town has a rich maritime history and today houses the largest fish market in the UK and the centre of the UK’s fish-processing industry. Following a period of economic downturn, Grimsby is now enjoying the benefits of several regeneration projects that are breathing new life into the town. Grimsby has relatively cheap house prices and many properties that would benefit from refurbishment, making it a great place for property investors with an interest in renovation.

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