The rental market is an attractive way to make a living as banks continue to offer low interest rates and there is a noticeable rise in demand for rental properties all over the country. Knowing where to invest to get the best ROI is vital and that is why TotallyMoney.com have released an interactive heat map to showcase the best and worst places to invest in buy-to-let properties in the UK.
This interactive map from TotallyMoney.com bases its findings on the yield that a property offers investors. The yield was calculated by taking the median annual rent and dividing it by the median asking price for the property and is a handy measurement tool for both new and experienced investors to use.
There is a notable geographical divide between the North and the South of the UK, with properties in the North offering a far better ROI than those down South. Surprisingly for many, London didn’t rate highly in terms of potential yield on rental properties and should generally be an area to avoid except for a few specific locations.
Sheffield, Aberdeen and Bradford ranked as the top three areas to get the best yield from your property, with the only southern city making the top 10 list being Southampton. Properties in Sheffield in the S1 postcode boast an 11.1% yield, in Aberdeen’s AB24 postcode a 10.4% yield and in Bradford’s BD1 area 9.18%, and all of these figures rated higher than the only southern city to feature in the top 10 with Southampton offering a yield rate of 8.62%.
Top 10 Locations
| Post town | Postcode | Median monthly rent |
Median asking price |
No. of properties for sale | Yield |
| Sheffield | S1 | £645 | £69,995 | 108 | 11.06% |
| Aberdeen | AB2 | £1,200 | £138,000 | 121 | 10.43% |
| Bradford | BD1 | £459 | £60,000 | 45 | 9.18% |
| Manchester | M14 | £980 | £134,950 | 370 | 8.71% |
| Southampton | SO17 | £1,300 | £181,000 | 104 | 8.62% |
| York | YO1 | £1,929 | £268,750 | 74 | 8.61% |
| Greenock | PA15 | £425 | £59,998 | 150 | 8.50% |
| Aberdeen | AB11 | £1,150 | £170,000 | 77 | 8.12% |
| Glasgow | G44 | £494 | £75,000 | 171 | 7.90% |
| Paisley | PA3 | £425 | £65,000 | 168 | 7.85% |
Source: TotallyMoney.com analysis
The map can be used as a useful go-to tool to help investors to see which areas offers the best yield and with Sheffield City Centre offering more lucrative deals than London; investors will certainly gain a fresh insight into the buy-to-let market by using this map. Bournemouth, Macclesfield and Bishop’s Stortford also didn’t fare well in the rankings, with northern cities by far outperforming their southern counterparts.
Bottom 10 Locations:
| Post town | Postcode | Median monthly rent |
Median asking price |
No. of properties for sale |
Yield |
| London (Chelsea) | SW3 | £3,120 | £1,795,000 | 447 | 2.09% |
| Tonbridge | TN8 | £1,101 | £637,500 | 108 | 2.07% |
| Beaconsfield | HP9 | £2,496 | £1,475,000 | 127 | 2.03% |
| Dartmouth | TQ6 | £650 | £385,000 | 290 | 2.03% |
| London (Mayfair) | W1 | £3,683 | £2,187,500 | 778 | 2.02% |
| Worcester | WR2 | £402 | £240,000 | 281 | 2.01% |
| Bishop’s Stortford | CM22 | £913 | £549,950 | 117 | 1.99% |
| Macclesfield | SK10 | £650 | £400,000 | 586 | 1.95% |
| Bournemouth | BH13 | £1,700 | £1,050,000 | 436 | 1.94% |
| London (South Kensington) |
SW7 | £2,925 | £2,250,000 | 447 | 1.56% |
Source: TotallyMoney.com analysis
Finding a lucrative deal on a property always involves a certain amount of background research and analysis. As well as looking into the best location to buy a property based on the yield, it is also important to look at other factors such as the cost of a mortgage and who you want to aim your rental at.
The interactive map is an extremely helpful tool to help to identify the most lucrative areas in the UK to invest in property but it is essential to take other factors into consideration as well, if you are focused on finding a deal that will make you a good living.
