Unlocking Buy-to-Let Treasures: UK's Top Investment Spots for 2024:

Embarking on the landlord journey? Targeting areas with high rental yields is key. Here's your quick guide to the UK's investment sweet spots. Rental yield, showing annual rent as a property price percentage, is your investment's efficiency gauge. The UK's average is 5.60%, based on an average buy-to-let price of £261,897 against a monthly rent of £1,223. This balance has improved for investors as rents rise faster than house prices.

While crunching numbers, also consider tenant demand and potential property value growth.

Cities with Top Yields:

Sunderland, Aberdeen, and Burnley lead with average gross yields above 8%, mainly found in Northern England and Scotland. Southern cities, with higher house prices, offer lower buy-to-let yields.

Regional Yield Highlights:

Investing locally? Know the top-yielding areas in your region:

North East: 7.65% average gross yield

County Durham: 7.81% gross rental yield

Darlington: 7.52% gross rental yield

Gateshead: 7.75% gross rental yield

Scotland: 7.48% average gross yield

Renfrewshire: 9.56% gross rental yield

East Ayrshire: 9.50% gross rental yield

West Dunbartonshire: 9.09% gross rental yield

North West: 6.66% average gross yield

Burnley: 8.40% gross rental yield

Blackpool: 7.80% gross rental yield

Preston: 7.55% gross rental yield

Wales: 6.43% average gross yield

Blaenau Gwent: 7.58% gross rental yield

Neath Port Talbot: 7.44% gross rental yield

Merthyr Tydfil: 7.40% gross rental yield

Yorkshire and the Humber: 6.38% average gross yield

Hull: 7.45% gross rental yield

North East Lincolnshire: 7.16% gross rental yield

Barnsley: 7.15% gross rental yield

West Midlands: 5.95% average gross yield

Stoke-on-Trent: 7.72% gross rental yield

Coventry: 6.66% gross rental yield

Newcastle-under-Lyme: 6.65% gross rental yield

East Midlands: 5.84% average gross yield

Nottingham: 7.27% gross rental yield

Mansfield: 6.57% gross rental yield

Boston: 6.50% gross rental yield

South West: 5.37% average gross yield

Plymouth: 6.39% gross rental yield

Gloucester: 6.28% gross rental yield

Swindon: 6.03% gross rental yield

South East: 5.34% average gross yield

Southampton: 6.62% gross rental yield

Gosport: 6.46% gross rental yield

Portsmouth: 6.45% gross rental yield

East of England: 5.28% average gross yield

Great Yarmouth: 6.42% gross rental yield

Peterborough: 6.24% gross rental yield

Fenland: 6.17% gross rental yield

London: 4.93% average gross yield

Barking and Dagenham: 6.22% gross rental yield

Newham: 5.89% gross rental yield

Bexley: 5.68% gross rental yield What’s the outlook for buy-to-let property investment in the UK?

The heat is coming out of UK rent rises. Annual growth is now at the lowest rate for two years, down to +7.8% from +11% a year ago as demand has dropped by a fifth in that time.

2024 Buy-to-Let Outlook

The rental market sees a +7.8% growth, the mildest in two years, yet demand remains high. Although supply nears pre-pandemic levels, a +5% rental inflation is projected for 2024. House prices should stabilise, potentially boosting gross rental yields.

For buy-to-let success, understanding both gross and net yields, along with market dynamics, is crucial.

Written by Veera Josey, 3rd April 2024

Source, Zoopla