UK Buy-to-Let Yield Map 2019/2020

Looking for the key to successful property investment? Use our 2019/2020 buy-to-let guide yield to find prime pockets of profit and discover which areas aren’t worth the money.

Continued changes in tax relief and greater landlord responsibilities are two factors that may have you wondering if residential investment properties are worth it. To help you come to a conclusion, we’ve analysed the data of nearly 500,000 properties across England, Scotland and Wales. Our mission: to calculate the buy-to-let yield for each postcode. The result: a guide full of maps and quick insights to assist your decision in investment property.

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Top 25 buy-to-let areas

Postcodes in the top 25 are delivering handsome returns. The highest is Liverpool, where landlords can enjoy 10% yields. Coming a close second and third are Falkirk (9.51%) and Glasgow (8.71%). With two of these being renowned university cities, the consistent flow of potential tenants puts landlords in a healthy position.

Even the postcodes at the lower end of the top 25, such as Sunderland and Lancaster, are returning yields of around 7%.

Rank#	PostcodePC	Postcode TownPCT	Properties for Rent	Median Rental Value	Properties for Sale	Median Asking Price	Yield
1	L1	Liverpool	187	£750	368	£90,000	10.00%
2	FK3	Falkirk	30	£495	39	£62,450	9.51%
3	G52	Glasgow	46	£595	66	£82,000	8.71%
4	L11	Liverpool	55	£650	31	£90,000	8.67%
5	TS1	Cleveland	65	£425	34	£60,000	8.50%
6	KA1	Kilmarnock	68	£450	75	£64,995	8.31%
7	L6	Liverpool	153	£575	59	£85,000	8.12%
8	LE1	Leicester	176	£667	116	£100,000	8.00%
9	LS2	Leeds	111	£825	32	£125,000	7.92%
10	S1	Sheffield	219	£750	68	£115,000	7.83%
11	CF43	Cardiff	36	£425	35	£67,000	7.61%
12	TS3	Cleveland	60	£475	63	£74,975	7.60%
13	L2	Liverpool	115	£850	106	£135,000	7.56%
14	PA3	Paisley	42	£425	43	£68,500	7.45%
15	L3	Liverpool	282	£740	360	£119,950	7.40%
16	SR8	Sunderland	85	£450	143	£73,725	7.32%
17	G51	Glasgow	74	£595	31	£97,500	7.32%
18	NE8	Gateshead	148	£575	75	£94,950	7.27%
19	AB11	Aberdeen	173	£600	45	£99,995	7.20%
20	G67	Glasgow	57	£450	65	£75,000	7.20%
21	G32	Glasgow	46	£475	76	£79,995	7.13%
22	L4	Liverpool	136	£475	94	£80,000	7.13%
23	G21	Glasgow	30	£550	31	£92,995	7.10%
24	LA14	Lancaster	50	£500	128	£85,000	7.06%
25	SR5	Sunderland	46	£495	40	£84,950	6.99%

Liverpool

• Liverpool’s L1 city centre postcode tops the buy-to-let yield table with a potential 10% return on investment and a current asking price of around £90,000. This area includes the central retail area (including Liverpool One), the commercial district, and Chinatown.
• Five more Liverpool postcodes make the top 25 with yield returns ranging from 7.13%-8.67%.
• The L11 postcode ranks fourth in the top 25 and covers Croxteth and Norris Green. It’s also a short distance from Aintree University Hospital and approximately five miles to the city centre.

Falkirk

• In second place, Falkirk returns a rental yield of 9.51% in postcode FK3. Covering the Grangemouth area, it’s close to The Kelpies and the Falkirk wheel — the world’s only rotating boat lift.
• The current asking price for property in FK3 is around £62,450 and monthly rent is approximately £495.

Glasgow

• A total of five Glasgow postcodes made it into the top 25, with the best performing being G52. This postcode covers areas such as Hillington, Cardonald, Penilee and Mosspark. Buy here and landlords can expect a yield return of 8.71%.
• Glasgow postcode G21 scraped into the top 25. City districts include Springburn and Balornock. Current property asking prices are around £93,000 and monthly rent is £550.
• Other good postcodes include G32 (7.13%), G67 (7.2%) and G51 (7.32%). The latter includes Queen Elizabeth University Hospital, the Ibrox Stadium and the Glasgow Science Centre in the local area.

The North East

• Within England, look to the North East for strong buy-to-let yields. A cluster of popular student cities is on your doorstep, including Sunderland, Newcastle and Middlesbrough.
• Within this region, the best returns can be found in Cleveland’s TS1 postcode. The current asking price is around £60,000 and rental prices are £425, giving landlords a healthy 8.5% yield.
• Properties in TS3, SR8, NE8, and SR5 also perform well, with rental yields ranging from highs of 7.6% in Teeside, and only a slight decrease to 6.9% in Sunderland.

The UK’s worst buy-to-let postcodes

Here are the worst-performing postcodes for buy-to-let investments.

Rank#	PostcodePC	Postcode TownPCT	Properties for Rent	Median Rental Value	Properties for Sale	Median Asking Price	Yield
1	WC1X	London	440	£2,825	76	£1,484,408	2.28%
2	RG10	Reading	68	£1,100	34	£585,000	2.26%
3	GU10	Guilford	71	£1,295	116	£699,950	2.22%
4	KT7	Kingston upon Thames	41	£1,350	47	£737,475	2.20%
5	S7	Sheffield	98	£638	61	£350,000	2.19%
6	B73	Birmingham	69	£680	60	£375,000	2.18%
7	W8	London	400	£3,356	59	£1,962,500	2.05%
8	GL6	Gloucester	50	£795	92	£470,000	2.03%
9	IP13	Ipswich	34	£650	62	£397,500	1.96%
10	AL5	St Albans	115	£1,300	107	£800,000	1.95%

• St Albans is a commuter haven for those working in London, which could explain why it has the worst buy-to-let yield at just 1.95%.
• Other well-known commuter areas in the bottom 10 include Reading’s RG10 (2.26%), Guilford’s GU10 (2.22%) and Kingston upon Thames’ KT7 (2.20%).
• The Ipswich IP13 postcode is also best avoided as a paltry 1.96% yield is likely, partly thanks to properties costing as much as £397,500 and rent prices of £650.
• As of July 2019, the UK House Price Index lists the average cost of residential property in the UK at £232,710. All 10 postcodes in the worst-performing buy-to-let areas are much more than this.

Having looked at the best and worst buy-to-let areas, we now take a closer look at Scotland, Wales and London.

Top 20 London buy-to-let areas

Buy-to-let landlords in London benefit from high rental demand. Big Smoke landlords can enjoy a reliable, constant stream of suitable tenants for a range of property types

• E12 offers the best buy-to-let yields in London, offering landlords an average of 6.04% return. A little further out from Stratford, the area covers Manor Park and Aldersbrook.
• Seven of the top 20 buy-to-let postcodes in London can be found in Romford. The highest yield is in the RM9 postcode (5.46%) and the lowest is in RM17 (4.58%).
• The only north London postcode to make it into the London top 20 is N18 (4.92%), where you’ll find North Middlesex University Hospital.

Rank#	PostcodePC	Postcode TownPCT	Properties for Rent	Median Rental Value	Properties for Sale	Median Asking Price	Yield
1	E12	London	147	£1,799	63	£357,500	6.04%
2	SE17	London	229	£2,059	44	£430,000	5.75%
3	IG11	Ilford	257	£1,350	119	£290,000	5.59%
4	RM9	Romford	112	£1,375	53	£301,995	5.46%
5	RM8	Romford	176	£1,350	77	£305,000	5.31%
6	RM6	Romford	125	£1,450	110	£337,500	5.16%
7	SE11	London	166	£2,100	38	£492,500	5.12%
8	SE28	London	113	£1,250	46	£300,000	5.00%
9	RM10	Romford	119	£1,350	88	£325,000	4.98%
10	N18	London	73	£1,475	44	£359,995	4.92%

10 of the worst buy-to-let areas in London

High asking prices mean a buy-to-let investment property in London must work hard to return a profit. In some areas of London, this is nearly impossible.

• The yield in W8 (Kensington) is the worst in London. Expect to pay around £1,962,500 for a property and a monthly rent of £3,356. Total yield: 2.05%.
• The best of the worst is N21, which covers Grange Park and Winchmore Hill. Its ‘lower’ property price of £699,995 pushes the buy-to-let yield up to 2.56%.

Rank#	PostcodePC	Postcode TownPCT	Properties for Rent	Median Rental Value	Properties for Sale	Median Asking Price	Yield
1	N21	London	115	£1,495	75	£699,995	2.56%
2	SW1V	London	383	£2,383	80	£1,150,000	2.49%
3	SW5	London	383	£2,383	80	£1,150,000	2.49%
4	NW3	London	1048	£2,383	171	£1,170,000	2.44%
5	W1	London	1219	£3,763	138	£1,872,754	2.41%
6	SW14	London	112	£2,000	39	£1,000,000	2.40%
7	N2	London	180	£1,600	71	£810,000	2.37%
8	WC1	London	440	£2,825	76	£1,484,408	2.28%
9	KT7	Kingston upon Thames	41	£1,350	47	£737,475	2.20%
10	W8	London	400	£3,356	59	£1,962,500	2.05%

Top 10 buy-to-let postcodes in Scotland

Two of the top three best buy-to-let postcodes in the whole of the UK are in Scotland — FK3 (9.51%) and G52 (8.71%). But where else puts in a strong performance?

• KA1 in Kilmarnock delivers a very attractive 8.31% yield, while third place is PA3 in Paisley with a 7.45% return. Average property prices in both areas are comfortably under £70,000.
• Glasgow has the most postcodes in Scotland’s top 10. As mentioned, Glasgow’s G52 postcode sits at the top, but the city’s G51 (7.32%), G67 (7.20%), G32 (7.13%) and G13 (6.76%) are also valuable.

Rank#	PostcodePC	Postcode TownPCT	Properties for Rent	Median Rental Value	Properties for Sale	Median Asking Price	Yield
1	G52	Glasgow	46	£595	66	£82,000	8.71%
2	KA1	Kilmarnock	68	£450	75	£64,995	8.31%
3	PA3	Paisley	42	£425	43	£68,500	7.45%
4	G51	Glasgow	74	£595	31	£97,500	7.32%
5	AB11	Aberdeen	173	£600	45	£99,995	7.20%
6	G67	Glasgow	57	£450	65	£75,000	7.20%
7	G32	Glasgow	46	£475	76	£79,995	7.13%
8	G13	Glasgow	118	£670	94	£119,000	6.76%
9	PA1	Paisley	106	£445	58	£79,500	6.72%
10	KA8	Kilmarnock	42	£475	44	£90,000	6.33%

Worst buy-to-let areas in 10 Scotland

The worst performing postcodes seem to be scattered across Scotland, with low yield rates hovering at similar levels wherever the postcode.

• All of the bottom 10 Scotland postcodes have a buy-to-let yield between 3% and 3.7%. The best of the worst is AB15 (Aberdeen) at 3.72% and the worst is TD15 (Galashiels) at 3.08%.
• The worst-performing postcodes in Glasgow are G77 (3.66%), G84 (3.63%) and G71 (also 3.63%).

Rank#	PostcodePC	Postcode TownPCT	Properties for Rent	Median Rental Value	Properties for Sale	Median Asking Price	Yield
1	AB15	Aberdeen	131	£895	83	£289,000	3.72%
2	G77	Glasgow	41	£850	106	£279,000	3.66%
3	KA7	Kilmarnock	59	£560	80	£185,000	3.63%
4	G84	Glasgow	32	£575	59	£190,000	3.63%
5	G71	Glasgow	34	£575	109	£190,000	3.63%
6	KY16	Kirkcaldy	76	£1,050	48	£350,000	3.60%
7	FK9	Falkirk	41	£795	48	£265,000	3.60%
8	PH2	Perth	83	£575	73	£192,000	3.59%
9	KY15	Kirkcaldy	52	£550	41	£210,000	3.14%
10	TD15	Galashiels	33	£475	38	£185,000	3.08%

Ten best buy-to-let postcodes in Wales

Unsurprisingly, Cardiff, Newport and Swansea dominate the top 10 for Wales.

• Postcode CF43 offers landlords the highest yield in Wales with 7.61%. This area includes Maerdy, Ferndale, Tylorstown and Stanleytown.
• The highest returns in Newport can be found in NP13 at 5.78%. Current property asking prices are £82,000 and asking rent is £395.
• Swansea’s SA1 postcode ranks fourth in the top 10, delivering a 5.78% yield.

Rank#	PostcodePC	Postcode TownPCT	Properties for Rent	Median Rental Value	Properties for Sale	Median Asking Price	Yield
1	CF43	Cardiff	36	£425	35	£67,000	7.61%
2	CF39	Cardiff	39	£495	69	£99,995	5.94%
3	NP13	Newport	31	£395	50	£82,000	5.78%
4	SA1	Swansea	338	£650	116	£135,000	5.78%
5	CF10	Cardiff	265	£825	53	£174,950	5.66%
6	SA12	Swansea	41	£520	70	£111,475	5.60%
7	SA5	Swansea	69	£550	57	£120,000	5.50%
8	CF37	Cardiff	92	£540	83	£123,000	5.27%
9	SA11	Swansea	69	£468	101	£110,000	5.11%
10	NP23	Newport	32	£425	60	£99,950	5.10%

Worst 10 postcodes in Wales

Almost like a reflected mirror of the top 10, here are the lowest postcodes in Wales.

• Newport postcodes are variable. NP7 comes last with a 2.29% yield, while NP10 offers a slightly better 3.52% profit margin.
• Llandudno LL30 takes second place in the bottom 10. Properties in the Northern Wales coastal town are £193,000, while the current asking rent is £565. Total yield: 3.51%.

Rank#	PostcodePC	Postcode TownPCT	Properties for Rent	Median Rental Value	Properties for Sale	Median Asking Price	Yield
1	NP10	Newport	55	£675	67	£229,972	3.52%
2	LL30	Llandudno	34	£565	52	£193,000	3.51%
3	NP26	Newport	32	£798	53	£280,000	3.42%
4	CF15	Cardiff	33	£738	51	£280,000	3.16%
5	CF64	Cardiff	93	£795	122	£310,000	3.08%
6	CF14	Cardiff	277	£760	187	£300,000	3.04%
7	SA3	Swansea	45	£850	107	£339,748	3.00%
8	NP16	Newport	66	£700	86	£290,000	2.90%
9	NP25	Newport	37	£725	48	£370,000	2.35%
10	NP7	Newport	43	£607	79	£317,498	2.29%

Doing the calculations: how we worked out the buy-to-let yields

The facts and figures in this report are designed to help property investors.

We’ve worked out the figures using information from Realyse, which specialises in property data.

For a postcode to be included in our analysis it must have more than 30 properties for sale and 30 properties to rent. In total, we analysed 478,486 properties. Of these, 217,055 properties were listed as for sale and 261,431 properties were listed to rent. The buy-to-let yield is defined as the average annual rent divided by the average asking price.

Extra postcode map data was collected from Wikipedia.

Are you financially ready for an investment property?

Using information from this data gives residential property investors an idea of where the most worthwhile buy-to-let areas in the UK could be.

TotallyMoney’s James McCaffrey explains: “As credit experts, TotallyMoney is committed to improving the UK’s credit score with free credit reports, and helping people move on up to a better future. The data analysed is another way we’re working to arm people with useful information.

“What’s clear from the maps and data is there are strong pockets of profit across the UK. Currently, the North of England and Scotland are buy-to-let hotspots, delivering consistent 7% yields or higher. New and existing landlords should check the UK property market regularly to see where good investments are.”

For an idea of how lenders view you, sign up for your Free Credit Report. You’ll get clear picture of your credit rating and your borrowing potential, and signing up won’t harm your credit score. Your next stop should then be our buy-to-let mortgage comparison tool — designed to help you find the best buy-to-let mortgages.