2023 was a subdued year in the property market. The cost-of-living crisis forced many landlords out of the South East region, looking for better-value properties elsewhere with higher potential yields. However, this may have been a good thing for those savvy investors.
Current data shows that the ten highest-yielding cities in the UK were all in the northern regions, where properties are considerably cheaper than down south. Unsurprisingly, Liverpool and Glasgow enter the top 10 list with rental yields of 7.43% and 7.90%, respectively.
These areas offer fantastic-value properties due to low house prices and huge student populations. Both cities have thriving economies with plenty of employment prospects, making certain areas within Liverpool and Glasgow exceedingly popular with tenants.
Burnley investment properties proved to be the area with the highest rental yields in the North West, exceeding 7.96%. According to the Zoopla Rental Index, the best-yielding places at the beginning of 2024 were as follows:
| City | Average Gross Rental Yield | Average Monthly Rent | Average Buy-to-Let Price |
|---|---|---|---|
| Sunderland | 8.50% | £598 | £84,432 |
| Dundee | 8.07% | £783 | £116,498 |
| Burnley | 7.96% | £561 | £84,575 |
| Glasgow | 7.90% | £930 | £141,180 |
| Middlesbrough | 7.85% | £604 | £92,292 |
| Aberdeen | 7.45% | £673 | £108,436 |
| Liverpool | 7.43% | £798 | £128,905 |
| Blackburn | 7.41% | £656 | £106,209 |
| Hull | 7.30% | £594 | £97,602 |
| Grimsby | 7.07% | £602 | £102,208 |
