Best Rental Yields UK
Rental yields and house price growth rates vary across the UK. Landlords now have to work with strict lending criteria and punitive new tax laws, with more making losses in recent years if they haven't bought in the right area.
The ONS collects data on house prices and rents for each local planning authority in England, and publishes it semi-annually.
Where To Buy-to-Let
The average monthly rent bill in England fell between September 19 and March 20, from £852 to £843 (-2% p.a.). During the same period, house prices grew from an average price of £242,982 to £248,271 (+2% p.a.).
We have mapped the average rental yield for flats in each local authority across England. The areas are color coded, the lowest yields are in red through to the highest in green. You can click on a local authority to see the name and rental yield.
Best Areas For Buy-to-Let
- Knowsley 8.8%
- Burnley 8.8%
- Hartlepool 8.6%
- Boston 8.6%
- Barrow-in-Furness 8.4%
Worst Areas For Buy-to-Let
- Kensington and Chelsea 2.5%
- Westminster 2.9%
- Hammersmith and Fulham 3.0%
- Camden 3.0%
- City of London 3.2%
Historically, areas in the south, such as London, have recorded below average rental yields but delivered higher house price growth rates to compensate. This is still the case in some parts of London, but buyers in some affluent boroughs may be stung with low rents and house price growth, because of more punitive stamp duty rates and geopolitical concerns such as Brexit.
House price growth rates are more variable than rental yields, particularly in areas with fewer sales, where volatility due to a small sample size can swing the output. The highest house growth is found in select London boroughs, including Kensington & Chelsea, Westminster and Hackney, as well some select Northern areas like Hyndburn and Pendle, which rank high in both house price growth and rental yield tables.
We have included a table of rental yields and house price growth rates for the year ending March 2020. You can sort the list by clicking on columns headers, or find an area using the search box.
Resi provide a free tool for finding your local planning authority, find it here.