Best rental yields in the UK – from North to South
Investing in property? Find out the best rental yields in the UK
The UK stands strong as one of the most reliable buy-to-let success locations. The industry is booming with its stable economy and cosmopolitan cities, thriving with action and work opportunities, drawing in people from all over the world.
If you’re new to property investment or interested in taking the big leap, it’s best to find out what you’re in for. It can be time-consuming and stressful, however, property investment is still one of the safest things you can do with your savings.
If done correctly, you can maximise your revenue with little risk. Start your first few steps now and learn about what are the best cities to invest in and the best place to invest in the UK. Let’s read more about the best rental yields in the UK.
Table of contents
- Where is the best place to invest in property in the UK?
- What is a good rental yield in the UK?
- Why invest in property in the UK?
- What is UK’s tax on rental income?
- Short, mid or long-term?
- Invest in the UK with GuestReady
1. Where is the best place to invest in property in the UK?
The UK property market is in a good place in 2024. Buyers can expect a fall of around 3% in 2024, with growth of 3.5% forecast for 2025, meaning that this year is the ideal time to buy a property in the UK .
While most people look to London as the obvious starting point, the reality is that yields in London don’t usually exceed 6%. As we illustrate here, some areas in the UK offer average yields of 9% or higher, which is hugely attractive to prospective buy-to-let investors.
So, if you’re looking to invest in property in the UK, below are some of the best areas for rental yields, offering returns of 7% or higher in 2024:
Buy to let East Ayrshire
- Rental yield: 9.57%
- Average property price: £183,633
East Ayrshire is home to numerous towns and villages in western Scotland that were former mining communities. Kilmarnock, Darvel, and Hurlford are popular locations here, each has excellent access to Glasgow, less than an hour away via the M77. Glasgow-Prestwick Airport is also close by for continental connections.
Properties in East Ayrshire deliver the best UK rental yields in 2024, offering an average yield of 9.57%. And with an average purchase price of less than £185,000, it’s clear to see that East Ayrshire promises good returns for buy-to-let investors.
Buy to let West Dunbartonshire
- Rental yield: 9.15%
- Average property price: £193,230
Situated northwest of Glasgow, West Dunbartonshire is another viable option for buy-to-let investors in 2024, with an impressive average yield of 9.15%. Clydebank and Dumbarton are the district’s biggest towns, with many terraced and semi-detached properties available.
For something more rural, look at Balloch, a short walk from Loch Lomond and one of Scotland’s most stunning countryside destinations. Holiday rentals do well in and around Balloch and other areas near Loch Lomond, given the number of hikers that make their way here each year.
Buy to let Middlesborough
- Rental yield: 8.52%
- Average property price: £151,047
Located in North Yorkshire, Middlesborough is a working-class town with a population of more than 370,000. The town is 43 miles north of York and 19 miles from the popular historical centre of Durham.
Middlesborough is an attractive proposition for buy-to-let investors, given the average property price of just over £150,000 and an average rental yield of 8.52%.
Buy to let Burnley
- Rental yield: 8.41%
- Average property price: £131,686
From the northeast of England to the northwest, Burnley is in Lancashire and is relatively close to big cities like Manchester, Leeds, and even Liverpool. Burnley is one of the cheapest places in the UK to buy property, with an average price of just £131,686 in 2024.
Coupled with an average rental yield of 8.41%, it’s easy to see why Burnley is a great buy-to-let option if you’re keen to invest in property in the northwest of England in 2024.
Buy to let Liverpool
- Rental yield: 7.57%
- Average property price: £211,038
Property prices are estimated to rise by 28% over the next four years. This provision gives Liverpool the edge as a prospective rental hotspot. Central postcodes are delivering the best rental returns and yields on the properties close to the Royal Liverpool University Hospital, as they can even go up to 10%.
The city’s plans for renovation are a very ambitious project that will for sure boost its potential, leading to a very auspicious future for investors. The average property price is £164.550 and the average rental yield in Liverpool is currently at 6.4%, making it one of the highest-yielding cities in the UK.
Buy to let Blaenau Gwent
- Rental yield: 7.38%
- Average property price: £145,622
Blaenau Gwent is worth considering if you’re looking for a buy-to-let opportunity in Wales. With a population of just over 66,000, the area is home to Abertillery, Blaina, Tredegar, and other towns and villages. Situated in southeast Wales, the area boasts natural beauty with walks and trails traversing the lush green countryside, making it popular with hikers.
The average buy price is less than £150,000, and you can expect an excellent rental yield of around 7.38%. Other areas in Wales to look at for rental yield value in 2024 include Neath Port Talbot (7.23%) and Merthyr Tydfil (7.22%).
Buy to let Hull
- Rental yield 7.30%
- Average property price: £162,529
Hull is situated at the mouth of the Humber River in northeast England. The city is close to the rolling green countryside of Yorkshire, and there are many quaint villages and countryside retreats close by.
What’s more, Hull has a vibrant student population and great nightlife, making this a fun city for young adults and young professionals. Hull is one of England’s cheapest areas to buy and live, with an average property price of £162,529. You can expect a rental yield of 7.30% in Hull.
Buy to let Nottingham
- Rental yield: 7.06%
- Average property price: £252,745
If your investment strategy points towards student accommodation, Nottingham is where you should put your money. Home to two major universities (Nottingham Trent University and the University of Nottingham) as well as one of the biggest teaching hospitals in the UK (Queens Medical Centre), the city shows a great need for student housing. In case you’re looking for long-term tenants, affordability has also been a key factor in Nottingham’s rising population, contributing to a growing demand for rentals.
Buy to let Stoke on Trent
- Rental yield: 7.09%
- Average property price: £166,529
From the East Midlands to the West Midlands, Stoke on Trent is a town famous for its pottery industry. Situated just off the M6 halfway between Birmingham and Manchester, Stoke is a decent location with excellent transport links to some of the UK’s busiest cities.
Though the average buy price is slightly higher in Stoke than it is in some of the other locations on our list, the average rental yield of 7.09% slightly trumps Nottingham and is a great option if you’re looking for a buy-to-let opportunity in the Midlands in 2024.
2. What is a good rental yield in the UK?
Yields fluctuate across the UK and even in the same city or region, depending on the postcode. Location, surrounding amenities, and prestige will determine rental prices and play a huge role in your revenue.
In the UK, a good yield is somewhere between 5% and 8%. Beware that London is a completely different scenario and that anything above 5% is considered a pretty good decent yield. For bigger yields, you should consider student housing. Smaller studio apartments are a cheaper investment and the perfect match for students and young professionals trying to establish themselves in a new city.
3. Why invest in property in the UK?
Buying real estate in the UK is a good investment because of the disparity between offer and demand. House prices are still affordable for buyers, but the demand for renting seems to continuously increase at a fast pace. This is noticeable mainly in cities with development and renovation, and have a high quality of living with good employment rates.
In comparison to other European countries, investing in property is much easier for foreign citizens, thanks to the benefits of a much more liberal economic policy. You won’t need British citizenship or a permanent residence permit. There are no real limitations of ownership rights for overseas investors. In fact, they share the exact same rights and obligations as the British.
As for returns, a strong well, and established economy, with the UK securing its position as Europe’s business-leading destination, it sustains a very stable investment background.
4. What is the UK’s tax on rental income?
The tax you pay from renting your property may fluctuate depending on how much you are profiting as well as on your own individual circumstances. It may be a case where you don’t make enough revenue to pay your taxes or you pay tax at a rate of 20%, 40%, or 45% on your rental income.
To calculate your rental income, you must subtract any allowable expenses from your total income. That said, do not forget to deduct costs of loan interests, mortgage, insurances, maintenance (not including improving works), utility bills, and professional services.
5. Short, mid or long-term?
Short-term rental is the perfect option for property owners in cities with all-year high tourism rates, higher rental rates, and flexibility.
Long-term rentals are a good solution for residential areas, renting big three and four-room houses for families, and smaller apartments for single tenants.
Is your property located close to a university? Students can guarantee you a minimum of 12 months of rent, and they may even increase their stay for the whole duration of the graduation or even further.
It is fundamental that your returns cover all your expenses, so you can make the most of your profits. Bearing that in mind, you must choose the renting modality that better fits your purposes.
Best Rental Yields in the UK FAQs
What does rental yield mean?
In a nutshell, rental yield indicates how much you can reasonably expect a property to deliver in rent, expressed as a percentage of the property’s value. So, for instance, if you pay £120,000 for a property with an expected yield of 5%, you can expect an annual return in the region of £6,000.
Which area offers the best rental yields in the UK in 2024?
East Ayrshire offers the best rental yields in the UK in 2024 at 9.57%. Scotland has several communities that offer attractive yields, with West Dunbartonshire (9.15%) and Renfrewshire (9.13%) also attractive propositions.
What is the average rental yield in London?
Rental yields in London are calculated by area as opposed to the city as a whole. In 2024, Greenwich SE28 offers the highest rental yield in the city, with an average yield of 6.10%. If you’re interested in a buy-to-let opportunity in London, read our guide to rental yields in London in 2024.
6. Invest in the UK with GuestReady
Looking to buy investment property in the UK? Schedule a call with our experts in property investment and find out the estimated returns of your properties.
