If you’re an investor looking to create a source of continuous income from your properties, renting is a good way to go.
However, renting is a tough game, and you want to make sure you’ll get the biggest bang for your buck. Therefore, analysing rental yield is very important.
This article will walk you through some of the best areas in the UK if you’re hunting for a solid rental yield. That is, the largest rental return on property for those who don’t know.
Let’s jump into it.
Bradford
Bradford is a city in West Yorkshire home to a population of around 550,000 people. It is also still the UK’s highest city.
Bradford provides a lucrative investment for property investors looking for cheap prices and high rental yields. At the time of writing this, Bradford has an average property price of £171k, which is significantly lower than the UK average (£283k).
Not only are the prices cheaper, but the rental yields are huge. Currently, Bradford is providing rental yields of 10%+ for property investors. That’s not counting the potential return on HMOs.
With the combination of cheap house prices and high rental income, Bradford is a location many investors should be paying attention too.
Liverpool
Liverpool has always been of interest to investors. The city has been investing heavily in property over the last few years, resulting in solid capital appreciation for many Liverpool postcodes.
Despite all the growth in the past years, Liverpool remains a viable investment for property owners to get a large return on investment.
As of writing this, house prices in Liverpool sit at £186k, which is still lower than the UK average. Additionally, prices are starting to come down in the area. So, if you wait a bit, you might be able to get an even bigger discount.
As for rental yields, Liverpool boasts a high return on investment, Currently, yields are standing at 9%.
With Liverpool being such a vibrant city and full property ROI, investors would be doing themselves a favour when looking in this direction.
Middlesbrough
Middlesbrough is small northern town positioned nicely in the Tees Valley with a population of around 139,000 people.
It is one of the cheapest places in the UK for property investing, with an average house price of £131k, and a median house price of £110k. Additionally, it looks like prices are starting to decline, meaning investors could grab an even better bargain at a later date.
If the lower prices weren’t enough, rental yields are also fantastic in this area. For those looking to rent out their properties, you can expect to achieve a yield of 9% in this area. Not too bad if you’re after consistent cash flow from your assets.
With the decline prices, waiting wouldn’t be a bad idea. You might be able to get an absolute bargain.
Blackpool
Blackpool is a well-known and famous town, recognised by its Pleasure Beach and Blackpool Illuminations. Not only is it a tourist destination, however. It is also a great place to be looking at buying property.
Currently, the prices in Blackpool are still relatively cheap compared to the UK average of £283k. The average house price in Blackpool is £167k, and prices have been on a downward trend for the past 12 months. Making this a lucrative area for cheap investing.
Along with the cheap housing, rental yields are very high as well. You can expect to receive an average of 8% in rental yield if you’re looking to turn your Blackpool property into a cash flow machine.
Not a bad rate of return on a relatively cheap area.
Sheffield
The final option for investors hunting for decent rental yield is Sheffield. This innovative city has caught the eye of many property investors because of its cheap housing and decent capital appreciation.
At the moment, you can expect to pay around £192k for a house in Sheffield, which is almost 100k lower than the national average. On top of this, rental yields are peaking around 8%, and that’s in the centre as well.
If you’re looking for a good rental cash flow in an up-and-coming city, Sheffield should be watched carefully.
Summing it up
Despite the current market, there are still areas in the UK that are very affordable for the every-day investor. These properties are not only low in price, but they also have the ability to earn an excellent rate of return in rental yield.
If you’re after a steady cash flow to weather the current market conditions, the above locations are definitely the places you need to be looking.
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