UK Buy-To-Let Yield Map 2022 | Track Capital (2024)

As house prices are predicted to rise steadily through 2022, property investment looks set to continue being a popular choice for many. The current average rental yield for the UK is 3.63%, however, savvy investors know that much greater returns can be had in certain locations, but where?

At Track Capital we have analysed up to date market prices for 1350 UK postcode districts and created this handy guide to the best places for buy-to-let investors in the UK, looking at rental yields for all of the locations we have data for.

Editor’s Note: There is an updated version of this data available, please see our rental yield map for 2023.

Position	Postcode	Area	Avg asking price	Sales per month	Avg asking rent (pm)	Avg yield
1	NG7	Nottingham	170,278	10	1,598	11.30%
2	NG1	Nottingham	159,083	5	1,473	11.10%
3	BD1	Bradford	54,526	8	483	10.60%
4	M14	Manchester	205,102	10	1,721	10.10%
5	NE6	Newcastle Upon Tyne	134,641	21	1,104	9.80%
6	YO10	Yorkshire	286,470	12	2,328	9.80%
7	SA1	Swansea	140,001	21	1,073	9.20%
8	CF37	Cardiff	135,985	20	1,039	9.20%
9	SO17	Southampton	223,073	6	1,709	9.20%
10	YO31	Yorkshire	281,391	20	2,141	9.10%
11	NR5	Norwich	261,284	12	1,934	8.90%
12	SR1	Sunderland	74,502	2	542	8.70%
13	LS2	Leeds	153,957	2	1,078	8.40%
14	LS4	Leeds	203,493	6	1,364	8.00%
15	CF24	Cardiff	211,417	18	1,397	7.90%
16	NE2	Newcastle Upon Tyne	210,053	15	1,377	7.90%
17	SO14	Southampton	204,877	16	1,347	7.90%
18	TR11	Truro	354,248	20	2,316	7.80%
19	B29	Birmingham	234,974	16	1,507	7.70%
20	DN31	Doncaster	76,659	5	490	7.70%
21	NE1	Newcastle Upon Tyne	151,639	5	968	7.70%
22	SA2	Swansea	265,882	23	1,706	7.70%
23	G5	Glasgow	150,185	4	961	7.70%
24	G67	Glasgow	78,920	5	506	7.70%
25	AB11	Aberdeen	95,319	9	596	7.50%

Worst 25 Postcodes By Yield

Poistion	Postcode	Area	Avg asking price	Sales per month	Avg asking rent (pm)	Avg yield %
1	GU10	Guildford	675,577	19	1,075	1.9
2	HP9	Hemel Hempstead	1,173,312	15	1,944	2
3	IG4	Ilford	659,997	3	1,112	2
4	WD7	Watford	817,952	10	1,451	2.1
5	CM4	Chelmsford	685,863	11	1,257	2.2
6	B93	Birmingham	572,043	16	1,036	2.2
7	AL4	St Albans	630,017	14	1,181	2.2
8	KT13	Kingston	680,956	22	1,330	2.3
9	W1	London	2,050,988	13	3,889	2.3
10	SL9	Slough	851,315	11	1,708	2.4
11	SL0	Slough	545,368	7	1,112	2.4
12	GU6	Guildford	580,059	15	1,158	2.4
13	SW3	London	1,790,064	15	3,532	2.4
14	WR2	Worcester	305,920	19	611	2.4
15	EX10	Exeter	414,458	17	833	2.4
16	SG3	Stevenage	505,983	8	1,062	2.5
17	RH13	Redhill	465,458	24	965	2.5
18	GL53	Gloucester	530,747	14	1,104	2.5
19	SW13	London	1,160,781	12	2,423	2.5
20	CM24	Chelmsford	493,420	9	1,022	2.5
21	GU32	Guildford	491,177	5	1,026	2.5
22	LS29	Leeds	382,220	31	789	2.5
23	SY4	Shrewsbury	322,802	15	663	2.5
24	NW11	London	890,463	16	1,822	2.5
25	N6	London	757,583	16	1,637	2.6

Unsurprisingly we see the opposite pattern with the worst performing rental yields, the south of England, specifically london and the commuter belt where house prices are generally much higher than the rest of the country, making up all but a couple of the postcodes.

The North - Top 20 Postcodes By Yield

Position	Postcode	Area	Avg asking price	Sales per month	Avg asking rent (pm)	Avg yield %
1	BD1	Bradford	54,526	8	476	10.5
2	M14	Manchester	205,452	10	1,736	10.1
3	NE6	Newcastle Upon Tyne	135,345	21	1,106	9.8
4	YO10	Yorkshire	286,440	12	2,275	9.5
5	YO31	Yorkshire	281,579	20	2,199	9.4
6	SR1	Sunderland	74,502	2	537	8.6
7	LS2	Leeds	155,334	2	1,062	8.2
8	LS4	Leeds	203,493	6	1,342	7.9
9	NE2	Newcastle Upon Tyne	210,053	15	1,358	7.8
10	NE1	Newcastle Upon Tyne	151,813	5	965	7.6
11	TS1	Middlesbrough	68,119	7	420	7.4
12	TS3	Middlesbrough	81,914	10	501	7.3
13	NE4	Newcastle Upon Tyne	129,478	6	765	7.1
14	LA1	Lancaster	166,462	27	952	6.9
15	L15	Liverpool	170,150	12	971	6.9
16	L4	Liverpool	106,086	15	605	6.8
17	LS6	Leeds	242,456	16	1,370	6.8
18	TS4	Middlesbrough	105,217	7	569	6.5
19	M13	Manchester	216,963	2	1,175	6.5
20	DL4	Darlington	74,148	6	394	6.4

Each of the top 20 northern postcodes return much higher yields than the national average of 3.63%, with the top 10 postcodes easily doubling that return. Bradford’s BD1 postcode benefits from having a very low average asking price with properties regularly selling for below £50,000, it’s clear then that strong returns can be generated from the north’s cities.

Manchester

Liverpool

Liverpool has been recognised in recent years as the number one place in the UK for investors seeking to maximise yields, driven by affordable property prices throughout the city and higher than average yields, with the L15 and L4 postcodes reaching an average of 6.9% and 6.8% respectively. Liverpool is a city that, whilst steeped in history, is embracing modernisation, including a plan to invest billions in the redevelopment of its historic waterfront.

Learn more about buy-to-let in Liverpool

UK Buy-To-Let Yield Map 2022 | Track Capital (3)

Newcastle-Upon-Tyne

Another bustling city with industrial heritage, Newcastle is now a popular hub for business and education. Featuring strongly on the best buy-to-let areas, 3 of the city’s postcodes are in the top 25, with impressive yields of up to 9.8%. A slight decline in house prices and an upward trend in rental prices may indicate that now is an ideal time to consider investing in Newcastle.

Learn more about buy-to-let in Newcastle

UK Buy-To-Let Yield Map 2022 | Track Capital (4)

London’s 10 Best Postcodes By Yield

Position	Postcode	Area	Avg asking price	Sales per month	Avg asking rent (pm)	Avg yield %
1	DA9	Dartford	274,808	10	1,193	5.2
2	RM19	Romford	217,580	5	927	5.1
3	IG11	Ilford	329,241	15	1,375	5
4	RM8	Romford	343,608	9	1,419	5
5	SE17	London	515,062	10	2,076	4.8
6	SE28	London	306,806	6	1,221	4.8
7	RM9	Romford	350,135	12	1,397	4.8
8	N9	London	356,925	12	1,390	4.7
9	RM10	Romford	354,070	13	1,397	4.7
10	TW20	Twickenham	454,993	15	1,788	4.7

Not without its merits, London and its immediate surrounding areas may not be the best place to look for those seeking the maximum rental yields, however, above-average returns can still be realised in and around the city.

Each of these may return some satisfactory yields if you factor in average property values in these areas. The best yields are to be found a little further out in the areas of Dartford and Romford, places still within commuting distance to the city.

London’s 10 Worst Postcodes By Yield

Position	Postcode	Area	Avg asking price	Sales per month	Avg asking rent (pm)	Avg yield %
1	IG4	Ilford	659,997	3	1,112	2
2	WD7	Watford	817,952	10	1,451	2.1
3	W1	London	2,050,988	13	3,889	2.3
4	KT13	Kingston	680,956	22	1,330	2.3
5	SW3	London	1,790,064	15	3,532	2.4
6	NW11	London	890,463	16	1,822	2.5
7	SW13	London	1,160,781	12	2,423	2.5
8	N6	London	757,583	16	1,637	2.6
9	SW10	London	1,293,918	12	2,806	2.6
10	SW5	London	1,038,567	8	2,328	2.7

On the flip side, we will take a look at Londons worst-performing postcodes. It’s no surprise to see some of the more expensive postcodes in London on this list, where even a much higher than average rent barely makes a dent in the asking price of a property.

Wales - Top 10 Postcodes By Yield

Position	Postcode	Area	Avg asking price	Sales per month	Avg asking rent (pm)	Avg yield %
1	CF37	Cardiff	136,008	20	1,057	9.3
2	SA1	Swansea	140,001	21	1,071	9.2
3	CF24	Cardiff	211,863	18	1,422	8.1
4	SA2	Swansea	266,231	23	1,713	7.7
5	CF10	Cardiff	179,271	7	1,062	7.1
6	LL57	Llandudno	182,895	10	966	6.3
7	CH41	Chester	107,960	9	547	6.1
8	NP13	Newport	116,670	12	567	5.8
9	CF48	Cardiff	135,141	10	611	5.4
10	CH65	Chester	149,454	13	643	5.2

Glancing over the border into Wales we take a look at their most profitable buy-to-let properties. Now then, for the purposes of this report, the CH postcode of Chester, Merseyside and North East Wales is included under the banner of Wales, as this area still provides some promising buy-to-let opportunities that would be missed if solely grouped in with the north of England.

It Looks however like the Welsh capital, Cardiff, and the city of Swansea share 60% of the top 10 postcodes in Wales, including each of the top 5 spots. Asking rents that can typically be expected of a UK capital city, combined with affordable property prices indicate that Cardiff could be worth serious consideration in the future.

UK Buy-To-Let Yield Map 2022 | Track Capital (5)

Worst 10 Postcodes For Yields In Wales

Position	Postcode	Area	Avg asking price	Sales per month	Avg asking rent (pm)	Avg yield %
1	NP25	Newport	338,619	10	748	2.7
2	CF64	Cardiff	360,629	27	933	3.1
3	LL13	Llandudno	189,119	16	564	3.6
4	CF23	Cardiff	302,147	22	953	3.8
5	CF72	Cardiff	271,362	22	858	3.8
6	LL11	Llandudno	185,979	21	611	3.9
7	SY23	Ceredigion	234,946	16	755	3.9
8	CF31	Cardiff	212,763	23	709	4
9	LL18	Llandudno	173,930	20	588	4.1
10	NP20	Newport	199,505	22	690	4.1

Much like the other “worst postcodes” data we have, the property prices found in these locations ensure that yields are low, however, some of these are popular tourist areas where high prices are to be expected and rental income can be seasonal, for example, LL18 covers the very popular tourist town of Rhyl and SY23 includes Aberystwyth.

Scotland - 10 Best Postcodes By Rental Yield

Position	Postcode	Area	Avg asking price	Sales per month	Avg asking rent (pm)	Avg yield %
1	G5	Glasgow	150,185	4	961	7.7
2	G67	Glasgow	78,920	5	506	7.7
3	G32	Glasgow	96,052	7	600	7.5
4	AB11	Aberdeen	95,319	9	596	7.5
5	G14	Glasgow	108,625	8	672	7.4
6	PA1	Paisley	96,948	6	564	7
7	AB24	Aberdeen	105,712	10	601	6.8
8	DD4	Dundee	117,132	10	643	6.6
9	G31	Glasgow	132,249	7	718	6.5
10	G2	Glasgow	174,052	2	925	6.4

North of the border into Scotland, it’s easy to focus on investment opportunities in either Edinburgh or Glasgow, but what does the data show us? Where are the areas that could potentially deliver the best returns?

Well, it seems that if you want to see the highest return on investment for a rental property in Scotland there are fewer better places to look than Glasgow. Aberdeen’s AB11 postcode sneaks in amongst Glasgow with an impressive 7.5% yield. We can also see that there are on average more property sales per month in cities outside Glasgow, perhaps making them easier markets to enter, with more choice for investors.

UK Buy-To-Let Yield Map 2022 | Track Capital (6)

Worst Postcodes In Scotland By Yield

Postcode	Area	Avg asking price	Sales per month	Avg asking rent (pm)	Avg yield
G84	Glasgow	217,878	7	639	3.5
KA3	Kilmarnock	160,030	7	481	3.6
EH10	Edinburgh	364,537	7	1,112	3.7
DD2	Dundee	204,500	9	651	3.8
PH2	Perth	185,328	11	606	3.9
AB15	Aberdeen	278,482	13	900	3.9
IV2	Inverness	217,643	14	708	3.9
EH12	Edinburgh	313,919	8	1,043	4
EH3	Edinburgh	407,795	12	1,364	4
PH1	Perth	161,937	15	535	4

On the opposite end of the scale we see results spread out across the country a little more, with Edinburgh featuring more than any other area. High property prices in some areas of the Scottish capital keep the figure low, although the city is a draw to many tourists and students alike.

Conclusion

This data has shown that there are some very promising areas through the UK for property investment. The north of England remains strong for delivering consistent high yields, balancing property prices, rising rents and steady demand. Above 7% yields are possible in the northern cities of Manchester, Liverpool, Leeds and Newcastle.

Data from properties in London will naturally show lower yields, however, there are still opportunities present in the Greater London area, where prices are slightly lower than the city centre driven by demand from commuters.

For an in-depth guide to beginning your property investment journey please check out our Ultimate Guide To Property Investment, and for more information or advice on property investment feel free to fill in the contact form below – we’d be happy to answer any questions.

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About the data

We analysed UK rental yield and property price data from 1350 postcode areas. This data was provided by propertydata.co.uk and graphs were produced using data from REalyse.