RENTAL yIELDS & pROPERTY PRICES IN THE UK

As the pandemic impact & government restrictions ease, buyers are now looking to jump back into the property market. With the stamp duty holiday, purchase prices & rental yield data will be analysed more than ever.

New legislation, higher letting agent fees and tax increases, have made the past few years difficult for landlords. For sure the latest stamp duty news will add much positivity to the rental market.

Yield overview

So where should you be looking to target the best yield areas?

Where do you get the cheapest properties with high yield returns?

On the flip side, where should you avoid if you’re looking for rental income?

The below data will hopefully help you find a great place to purchase a property to rent out, we’ve got all the data points covered.

1. Which areas have the best rental yields?

2. Which areas have the worst rental yields?

3. Which postcodes have the highest valued properties?

4. Where is the cheapest place to buy?

5. Cheapest place on average to rent?

6. Where are the highest volumes of sales?

 

Which areas have the best rental yields?

Aside from the absence of London areas, there is one other surprising point to note in this table, which is the appearance of multiple Liverpool postcodes.

Liverpool is a hot spot for landlords looking to capitalise on high rental yields. 5 Liverpool postcodes make up the Top 20 best yield areas.

The highest position outside of England, is the Welsh area of Pontypridd, providing rental yields of 7.6%.

top rental yield postcodes UK

# Postcode City/Town Avg asking rent (pm) Avg yield
1 L7 Liverpool 859 9.9
2 BD1 Bradford 469 9.6
3 SR1 Sunderland 525 9.6
4 TS1 Middlesbrough 437 9.5
5 NE6 Newcastle 783 7.6
6 CF37 Pontypridd 789 7.6
7 L1 Liverpool 721 7.5
8 S1 Sheffield 696 7.4
9 L5 Liverpool 599 7.4
10 M14 Manchester 1,084 7.3
11 DN31 Grimsby 432 7.3
12 LS4 Leeds 1,075 7.3
13 M11 Greater Manchester 850 7.1
14 L2 Liverpool 757 6.9
15 S3 Sheffield 627 6.9
16 PR1 Preston 682 6.9
17 NG1 Nottingham 874 6.8
18 TS3 Middlesbrough 452 6.7
19 L15 Liverpool 786 6.7
20 IP27 Lakenheath 1,149 6.6

 

Liverpool, King of the North

With Liverpool so dominant, it’s only fair we give the city some more attention.

L7, L1, L5, L2 and L15 indicate are the prime areas in the city, for landlords to capitalise on and gain the best rental yields.

On the below infographic showing the best rental yield postcodes in Liverpool, we’ve also included the average purchase prices in the areas.

Liverpool rental yields

 

Which areas have the worst rental yields?

As you would expect, with the absence of London postcodes in the top 20 table, they make up a large proportion of the worst yield locations. The top 5 worst performing areas are made up of London postcodes.

The data isn’t likely to be shocking if you follow the property market with a keen eye regularly.

Over the last few years London has been notorious for its low rental yields, with Landlords opting for the higher capital growth and seemingly resilience to economic downturns.

With London house prices growing more than twice as fast as the rest of the UK, the below data doesn’t exactly represent doom & gloom for London property owners.

 

# Postcode City/Town Avg asking rent (pm) Avg yield
1 W1 London 2,698 1.6
2 SW7 London 2,996 1.7
3 RG10 Waltham Saint Lawrence 978 1.8
4 CM4 Ingatestone 944 1.8
5 SW3 London 2,654 1.9
6 HP9 Beaconsfield 1,664 1.9
7 SY13 Whitchurch 541 1.9
8 W8 London 2,820 2
9 OX13 Kingston Bagpuize 882 2
10 WC2 London 2,683 2.1
11 SW1 South London 2,595 2.1
12 HR9 Ross-on-Wye 627 2.1
13 N6 London 1,581 2.2
14 AL5 Harpenden 1,393 2.2
15 HR8 Ledbury 676 2.2
16 HR6 Leominster 544 2.2
17 NW8 London 2,453 2.3
18 SW10 London 2,352 2.3
19 W11 London 2,290 2.3
20 NW11 London 1,687 2.3

 

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Which postcodes have the highest valued properties?

Of course, the main antagonists in this list are mostly London postcodes.

SW7 poses an average asking price of over £2.16m! This is closely followed by it’s London counterpart W1, with average asking prices of £2.08m.

The fun part of the data is looking at the highest entry outside of London. That award goes to HP9 – Beaconsfield, which resides slightly outside of the M25.

Next in line is Virginia Water, GU25, just making into the bottom of the top 20.

 

# Postcode City/Town Avg asking price Average £/sqft
1 SW7 London 2,163,488 1,678
2 W1 London 2,087,998 1,666
3 SW3 London 1,673,529 1,736
4 W8 London 1,666,738 1,578
5 London London 1,502,436 1,676
6 London London 1,472,981 1,391
7 NW8 London 1,304,518 1,145
8 SW10 London 1,253,623 1,266
9 EC2 London 1,224,475 1,321
10 W11 London 1,202,267 1,391
11 SW13 London 1,159,762 889
12 W2 London 1,062,157 1,262
13 NW3 London 1,058,442 1,092
14 HP9 Beaconsfield 1,048,633 542
15 SW5 London 1,042,906 1,241
16 WC1 London 913,070 1,235
17 KT11 Cobham 896,266 535
18 NW11 London 886,494 716
19 SW14 London 878,977 795
20 GU25 Virginia Water 878,177 501

 

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But which postcodes are priced the highest that aren’t a stone’s throw away from the M25?

So if we look further away from London, the postcode who’s properties sell for the highest value is placed at number 65, is S022, Winchester.

The city in the county of Hampshire, resides on the edge of England’s South Downs National Park. It’s known for medieval Winchester Cathedral, with its 17th-century Morley Library, the Winchester Bible and a Norman crypt.

The next postcode outside of London, not a stone’s throw away from the M25, is OX2, Oxford, famed for its world renowned University.

 

# Postcode City/Town Avg asking price Average £/sqft
50 N14 London 673,607 565
51 TW11 Teddington 669,981 671
52 NW7 London 669,189 572
53 SW18 London 664,622 768
54 HP16 Great Missenden 662,710 432
55 N3 London 654,962 619
56 N10 London 653,774 704
57 RG10 Waltham Saint Lawrence 652,809 451
58 SW4 London 648,888 808
59 SW12 London 648,326 784
60 TW1 Twickenham 646,762 731
61 SW15 London 645,725 739
62 SL5 Ascot 644,067 461
63 SO22 Winchester 642,223 424
64 CM4 Ingatestone 642,021 454
65 IG4 London 642,000 424
66 KT2 London 641,983 654
67 N2 London 637,374 696
68 SW19 London 635,540 699
69 W5 London 632,827 716
70 SE22 London 630,621 710

Where is the cheapest place to buy?

So where in the country can you pick up the cheapest properties? Middlesborough, Bradford and Sunderland pose the cheapest opportunities for property purchases.

Interestingly, these 3 postcodes are in the top for of the best rental yield locations.

 

# Postcode City/Town Avg asking price
1 TS1 Middlesbrough 54,978
2 BD1 Bradford 58,673
3 SR1 Sunderland 65,478
4 DN31 Grimsby 71,105
5 DL4 Shildon 73,637
6 TS3 Middlesbrough 80,958
7 SR8 Peterlee 85,274
8 DH9 Stanley 91,391
9 BB11 Lancashire 91,516
10 L20 Liverpool 91,793
11 BD21 Keighley 91,833
12 CH41 Birkenhead 91,885
13 HU9 Kingston upon Hull 92,755
14 SR5 Sunderland 93,222
15 DL17 Ferryhill 95,380
16 FY1 Blackpool 95,526
17 HU3 Hull 97,043
18 DN32 Grimsby 97,652
19 L5 Liverpool 97,744
20 TS25 Seaton Carew 100,603

 

Lowest place on average to rent

On the flip side, the below table shows you where the cheapest place on average to rent a property.

The DL postcodes dominate proceedings, with Shilton, Ferryhill, Bishop Auckland and Willington towns providing the cheapest rental property locations in England.

 

# Postcode City/Town Avg rent pcm
1 DL4 Shildon 376
2 DL17 Ferryhill 377
3 DL14 Bishop Auckland 377
4 DL15 Willington 387
5 BB11 Lancashire 394
6 BD21 Keighley 395
7 HU3 Hull 399
8 YO15 Bridlington 404
9 TS24 Hartlepool 409
10 TS27 Hartlepool 410
11 TS26 Hartlepool 410
12 NE63 Ashington 413
13 DH9 Stanley 414
14 DN1 Doncaster 416
15 NE24 Blyth 416
16 DH5 NE24 419
17 DN15 Scunthorpe 421
18 BD7 Bradford 424
19 CF44 Wales 426
20 TS25 Seaton Carew 428

Where are the highest volume of sales?

Operating in an area where there is a high volume of sales is a great advantage to estate agents.

More sales results in more commission. The below table shows the top 20 areas where the most sales take place on average, within a given month.

Croydon is the biggest hotspot for sales, with 71 sales per month, with NG5 – Nottingham and BN3 – Hove tied in 2nd place with 65 sales per month.

 

# Postcode City/Town Sales per month
1 CR0 Croydon 71
2 NG5 Nottingham 65
3 BN3 Hove 65
4 LE2 Leicester 63
5 CF14 Cardiff 59
6 LE3 Leicester 58
7 BS16 Bristol 58
8 BN1 Brighton 58
9 NG17 Sutton-in-Ashfield 57
10 BN2 Brighton 57
11 TQ12 Newton Abbot 55
12 PR2 Preston 54
13 CV6 Coventry 54
14 SL6 Maidenhead 54
15 NN3 Northampton 53
16 BB5 Accrington 52
17 LE67 Coalville 52
18 NG16 Langley Mill 51
19 LN6 Lincoln 51
20 LE9 Barwell 51

Data sourced from propertydata.co.uk

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marta wonder

I got the best priced agent in my area with all the services I wanted. Using Rent Round I could see all the local agents in my area after just putting in my postcode.