New research has uncovered the UK’s best investment locations ranked by rental yield. The top performer is Burnley, with an average annual yield of 7.1%.

The Lancashire town is followed by Glasgow (6.9%), Belfast (6.4%), Blaenau Gwent (5.9%) and Forest Heath (5.7%) to make up the top five.

Regionally, the best yields can be found in Northern Ireland (5.6%), Scotland (5.3%) and the North East (5%).

According to the study, carried out by Direct Line for Business, the worst regional yields are found in the South East (3.8%), South West (3.7%) and East of England (3.5). Lower yields in these regions can be put down to higher property purchase prices.

In London, where average property prices are the highest, the average annual yield remains steady at 4.4% – this is down to the higher rental values that can be achieved in the capital.

The research shows that the average UK yield across 425 local authorities is 3.6% – with the North East the only region to record a figure below the national average.

“As the number of renters across the UK increases, so too has the number of private landlords, with more than five million privately-let properties currently in the UK,” says Christina Dimitrov, business manager at Direct Line for Business.

“With this increased competition, it is more important than ever that landlords are able to offer their tenants well maintained and fully insured properties that will provide best return on their investment in the future.”