The highest-yielding areas for buy-to-let property in the UK (September 2025)
Thinking of becoming a landlord—or growing your portfolio? Chasing higher rental yield is a classic way to make the numbers work, especially when mortgage rates and running costs feel punchier than they used to. Below we unpack where gross yields are strongest right now, why they’ve improved over the last year, and how to use yield data (without getting blindsided by the fine print).
Key takeaways (TL;DR)
- Yield = rent ÷ price. Gross yield helps you judge whether a property’s price is justified by its rental income; net yield goes further by subtracting costs (maintenance, insurance, letting fees, mortgage interest, etc.).
- Gross yields are up. Rents have risen faster than prices in many areas, lifting yields across every UK region.
- Top cities:Sunderland, Aberdeen and Burnley all average 8%+ gross yields.
- Top region: The North East leads at 7.9% average yield.
- But: Always pair yield with tenant demand, void risk, and price growth potential before you invest.
What is rental yield—and which one matters?
- Gross rental yield = (Annual rent ÷ Purchase price) × 100
Example: £900 rent × 12 = £10,800 a year. On a £150,000 purchase, gross yield is 7.2%. - Net rental yield refines this by deducting ongoing costs (repairs, safety checks, insurance, ground rent/service charges where applicable, management fees, mortgage interest, etc.). Net yield is the better “take-home” indicator but varies property-to-property, so market comparisons usually quote gross.
Current UK picture:
- UK average gross yield:5.8%
- Based on average buy-to-let price:£270,045 and average rent:£1,301 per month.
- Why yields improved: Rents have continued to climb while prices in many areas have been flat or drifting lower—pushing the yield percentage up.
Top cities for buy-to-let rental yield
The highest-yielding cities skew north of the Midlands and into Scotland, where entry prices are lower while rents have held firm. Southern cities typically have stronger long-run capital values but lower yields due to higher buy-in costs.
Leaders (8%+):
- Sunderland:9.3% (Avg. rent £659; Avg. BTL price £84,924)
- Aberdeen:8.3% (Rent £734; Price £106,170)
- Burnley:8.2% (Rent £634; Price £92,473)
Other high performers (7–8%+ range): Dundee, Middlesbrough, Hull, Blackburn, Glasgow, Grimsby, Liverpool, Newcastle, Barnsley, Stoke, Doncaster, Preston, Blackpool, Bradford—each hovering ~7–8% gross on average.
Lower-yield, higher-price markets:
- London: ~5.1% average gross yield; strong rents but very high buy-in costs compress returns.
- Oxford/Cambridge:5.0% / 4.7% average gross yields respectively—classic examples where capital values and incomes are robust, but initial prices push yields down.
Investor lens: High yield ≠ easy profit. Lower entry prices can mask pockets of weaker tenant demand, higher turnover, or capex needs (older stock, EPC upgrades, damp/mould remediation). Always test demand at property level (Rightmove/Zoopla listings velocity, letting agent intel, university term cycles, local employers).
Regional ranking: where yields are strongest
1) North East – 7.9% avg yield
Rents (£748) and prices (£114,098) are the lowest nationally, producing standout yields. Often the best region for cash-flow hunters—just be selective about micro-locations and stock condition.
2) Scotland – 7.6%
Solid rent-to-price ratios and big-name university cities drive dependable demand. Note local licensing and letting rules; plan for regulatory compliance.
3) North West – 6.8%
Major cities like Liverpool and Manchester show resilient demand. Regeneration corridors (e.g., around transport hubs/university clusters) can add capital growth upside to yield plays.
4–5) Wales; Yorkshire & the Humber – 6.5% each
Attractive entry prices and stable local economies. Void risk varies by town; aim near hospitals, universities, or big employers to anchor demand.
6) West Midlands – 6.2%
Birmingham looks balanced at ~6.4% city yield; strong tenant pools and infrastructure improvements (e.g., rail links) support long-term fundamentals.
7) East Midlands – 6.0%
Leicester/Nottingham show good liquidity; student and young-professional markets help reduce voids if well-managed.
8) Northern Ireland – 5.8%
Lower prices, steady rents. Understand local tenancy frameworks and demand clusters.
9–11) East of England; South West; South East – ~5.5–5.6%
Yields have improved as prices softened in parts of the East and South East, but they remain mid-table due to higher acquisition costs.
12) London – 5.1%
Still the UK’s liquidity champion, but yields trail. Works best for investors prioritising long-term capital preservation and growth over immediate income.
City snapshot: yields, rents and buy-in
Below is a quick-read cut from the full table to illustrate the pattern:
- Sunderland:9.3% | £659 rent | £84,924 price
- Aberdeen:8.3% | £734 rent | £106,170 price
- Dundee:8.1% | £809 rent | £119,569 price
- Liverpool:7.7% | £870 rent | £136,045 price
- Glasgow:7.8% | £1,012 rent | £154,945 price
- Manchester:6.6% | £1,144 rent | £207,712 price
- Birmingham:6.4% | £1,005 rent | £189,056 price
- Edinburgh:6.0% | £1,352 rent | £270,147 price
- Bristol:5.6% | £1,394 rent | £300,381 price
- London:~5.1% | £2,119 rent | ~£494k price
Pattern to notice: As prices jump above ~£200k–£250k in the South and London, yields typically slip into the 5–6% band even when monthly rents look strong.
The highest-yielding local authorities by region (Top 3)
If you prefer investing close to home (easier to manage, better local knowledge), start with these regional hotspots:
- North East (avg 7.9%)
County Durham (8.0%), Gateshead (8.0%), Darlington (7.8%) - Scotland (avg 7.6%)
East Ayrshire (10.0%), Renfrewshire (9.5%), West Dunbartonshire (9.2%) - North West (avg 6.8%)
Burnley (8.2%), Blackpool (7.2%), Preston (7.2%) - Wales (avg 6.5%)
Blaenau Gwent (7.6%), Neath Port Talbot (7.5%), Merthyr Tydfil (7.2%) - Yorkshire & the Humber (avg 6.5%)
Hull (8.0%), North East Lincolnshire (7.7%), Barnsley (7.3%) - West Midlands (avg 6.2%)
Stoke-on-Trent (7.5%), Coventry (6.7%), Newcastle-under-Lyme (6.7%) - East Midlands (avg 6.0%)
Nottingham (6.6%), Boston (6.6%), Mansfield (6.5%) - South West (avg 5.6%)
Gloucester (6.8%), Plymouth (6.4%), Swindon (6.3%) - South East (avg 5.6%)
Southampton (6.6%), Gosport (6.46%), Portsmouth (6.45%) - East of England (avg 5.6%)
Great Yarmouth (6.4%), Peterborough (6.24%), Fenland (6.17%) - London (avg 5.1%)
Barking & Dagenham (6.22%), Newham (6.0%), Bexley (5.8%)
Tip: Regional averages can hide street-by-street variance. A well-located flat near a hospital or university can outperform the area average by a full percentage point—or more.
Why yields are higher in the North (and parts of Scotland)
- Lower acquisition costs: Cheaper purchase prices magnify the rent-to-price ratio.
- Stable tenant bases: Local employers, colleges/universities, and hospitals generate sticky demand.
- Regeneration: Town-centre renewal and transport upgrades can lift both rentability and long-run value.
But: Factor in older housing stock (possible capex for EPC, damp/mould works), slightly higher void volatility in smaller towns, and more granular demand (one side of town lets in 48 hours; the other takes four weeks).
London & the South: lower yields, different playbook
Investors here often accept lower yield in exchange for:
- Liquidity: Deep tenant pools and sales markets
- Resilience: Historically strong capital values
- Premium lets: Corporate lets or high-spec HMOs (where compliant) can nudge yields higher than the raw city average
If income is your primary goal, consider outer-London boroughs with improving transport, or secondary towns in the commuter belt where prices have softened but demand remains healthy.
How to use yield data like a pro
1) Start with the table, finish with the street.
Shortlist by city/LA yield, then “ground-truth” micro-locations: check recent lets, average time-to-let, and discount rates (asking vs achieved).
2) Test tenant demand early.
Before offering, ask local agents: How quickly do 2-bed terraces let within ¼-mile? What’s the last achieved rent for a similar spec? If they’re quoting “days not weeks,” you’re safer.
3) Stress-test your net yield.
Build a conservative model:
- 8–10% of annual rent for maintenance/capex (more for older stock)
- Management at 10–15% + VAT (if using a full-service agent)
- Safety checks, licensing/ HMO where applicable
- Void allowance: 2–4 weeks per year (area-dependent)
- Mortgage interest at today’s rate plus a buffer
4) Watch regulatory headwinds.
Awaab’s Law timelines, Decent Homes Standard, local licensing, selective licensing zones, short-let restrictions—each can alter costs and achievable rent. Budget for compliance from day one.
5) Consider future capital growth.
Yield is your today return; value growth is your tomorrow upside. Look for regeneration maps (transport nodes, university expansions, hospital redevelopments), not just headline yield.
Worked example (turning 8% gross into a net reality)
- Purchase price: £120,000
- Rent: £800 pcm → £9,600 p.a.
- Gross yield: 8.0%
Typical annual costs (illustrative):
- Management (12% + VAT ≈ 14.4%): £1,382
- Maintenance/capex (8% rent): £768
- Safety/insurance/void allowance: £900 (varies)
- Mortgage interest (e.g., 5.5% on £90k interest-only): £4,950
Estimated net income (pre-tax): £9,600 − £1,382 − £768 − £900 − £4,950 ≈ £1,600
Net yield on purchase price:~1.3%
Moral: An 8% gross can compress fast. Buy well, manage tightly, and don’t skip the stress test.
Where to fish: three investor profiles
Cash-flow first (higher yield, hands-on):
County Durham, East Ayrshire, Sunderland, Burnley, Hull. Focus on solid streets near employers/schools; plan capex.
Balanced (income + growth):
Liverpool, Newcastle, Nottingham, Glasgow, Manchester suburban pockets. Choose resales with proven comps over speculative off-plan.
Growth-tilted (lower yield, lower void risk):
Outer-London value boroughs (e.g., Barking & Dagenham), Southampton/Portsmouth, select East of England towns on improving routes.
Common pitfalls (and how to dodge them)
- Chasing headline yield only: Inspect EPC, damp/mould risk, and licensing. Cheap stock can be a false economy.
- Relying on asking rents: Confirm achieved rents for your exact property type and finish level.
- Under-budgeting for voids/compliance: Bake in weeks vacant and an annual works allowance.
- Forgetting exit liquidity: Will this be easy to sell to another landlord or to an owner-occupier if you need to pivot?
The bottom line
If you want the biggest rental bang for your buck, the data still points north: North East (7.9% avg), Scotland (7.6%), and North West (6.8%) lead the yield table, with Sunderland, Aberdeen, and Burnley topping city charts at 8%+. But the right decision isn’t only about one number. The winners in 2025–26 will marry yield discipline with tenant-demand reality, regulatory readiness, and micro-location savvy.
Want me to turn your short-list cities into a buy box (budget, property types, target streets, and rent comps) or build a net-yield stress-test sheet you can reuse?
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