UK’s best and worst buy-to-let postcodes revealed

UK’s best and worst buy-to-let postcodes revealed


Todays other news
Zoopla has looked at prices now compared to just before...
Sean Woolley is the Founder and Director of real estate...
The next editions of the course are in September and...
A spotlight on the needs and expectations of those living...
A law change in the kingdom takes effect in six...


The results are in – the UK’s top 25 buy-to-let postcodes, as well as some of the worst performing areas, have been revealed by TotallyMoney.

The overall message from the credit experts is that the UK’s buy-to-let market is in rude health, with many of the top performing postcodes generating 7%-8% yields for investors.

L1 in Liverpool is the UK’s top buy-to-let postcode, according to the research. It delivers a yield of 10%, made possible by a median rental value of £750 and an average property price of just £90,000.

Next up are Scottish locations FK3 in Falkirk and G52 in Glasgow, with respective yields of 9.51% and 8.71%. Average rents in FK3 are lower at £495, but a typical purchase price of just £62,450 means landlords can still generate impressive yields.

In G52, meanwhile, the median rental value is £595 and the average property price is £82,000.

The top five is made up by L11 in Liverpool and TS1 in Cleveland – both generating yields of over 8.50% for investors.

By far the most attractive investment regions are the North West (predominantly Liverpool) and Scotland, with 16 of the top 25 postcodes situated in these areas.

Another strong region is the North East, with TS1 (5th) and TS3 (12th) in Cleveland ranking highly. Sunderland featuring twice in the top 25 (SR8 and SR5) and Gateshead’s NE8 coming in 18th position with an average yield of 7.27%.

On the flipside, TotallyMoney says many of the weakest performing buy-to-let postcodes are in commuter belt areas. At the very bottom is AL5 in St Albans with an average yield of just 1.95%. This is due to a typical purchase price of £800,000 and a high average monthly rent of £1,300 per month.

Other areas generating poor returns for investors are London’s W8 postcode in Kensington (2.05%), Reading’s RG10 (2.26%), GU10 in Guildford (2.22%) and KT7 in Kingston-upon-Thames (2.20%).

“Many existing and would-be landlords wonder if buy-to-let is still worth it,” says James McCaffrey, TotallyMoney spokesperson.

He argues that the data clearly shows that there are ‘pockets of profit’ for landlord investment this year.

“Landlords should always do their research before committing to a property purchase,” says McCaffrey.

“Understanding current market trends is part of that. Making sure they’re financially prepared is another.”

You can see an interactive map and full analysis here.

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Property Investor Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
A spotlight on the needs and expectations of those living...
Residents have started moving in to this decade-long project...
The right property type and postcode are essentials for successful...
The analysis looks at 20 locations in England...
The idea is part of the Financial Conduct Authority's review...
If conditions are met, it’s possible to buy a probate...
Picturehouse has now won a judgment against the landlord London...
Recommended for you
Latest Features
Zoopla has looked at prices now compared to just before...
Sean Woolley is the Founder and Director of real estate...
A spotlight on the needs and expectations of those living...
Sponsored Content
We buy any type of property – no matter the...
As the property industry shifts towards sustainable practices, Inspired Property...
Are you concerned about rising interest rates and their potential...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here