Bradford is the UK’s top yield hotspot

Landlords in the Bradford postcode BD1 are typically achieving rental yields of 11.6%, making it the best region to profit for investors, research from PropertyData and Sequre Property Investment shows.

The postcode has cheap properties averaging £57,000 in price, well below the Bradford average of £149,445 according to Rightmove.

Bradford has been named UK City of Culture 2025, meaning it will receive £275,000 in initial seed funding to help the city develop.

Dundee’s DD1 postcode is the next best area, offering rental yields of 10.1% against a typical price of £157,000.

And after that comes Sunderland’s SR1 (9.9), Leeds’ LS4 (8.7%) and Cardiff’s CF37 (8.4%).

Daniel Jackson, sales director of Sequre Property Investment, said: “For the seventh consecutive quarter, the North East of England recorded the top rental yield across the region at 11.9%, compared to Greater London, which generates nearly half this yield, at 4.6%

“This trend is likely to continue with house prices predicted to rise steadily through 2022 and rental yields achieving more than 8% across Leeds, Sunderland and Bradford, making these regions highly profitable for investors.

“For landlords it is all about yield – how much rental income versus the price they pay for the property. This has led to a shift away from London and the South East, where historic higher house prices have outweighed the rental income available. This has been exacerbated by the Covid crisis that has hit rental income in London in particular.

“So, it’s not surprising to see in these figures house prices have been rising in the North East, North West and Yorkshire in particular as investors chase those higher yields.

“At the moment, these areas still look attractive for landlords as they are providing the rental income and the opportunity for capital appreciation, which they can’t achieve in their local areas.”

Buy-to-let investors yielded an average of 5.7% on their property investments in the first quarter of 2022, down from 6.3% in the first three months of 2021, according to data collected by lender Fleet Mortgages.

Region Average Price Rental Yield
Bradford (BD1) £57,000 11.6%
Dundee (DD1) £157,000 10.1%
Sunderland (SR1) £70,000 9.9%
Leeds (LS4) £206,000 8.7%
Cardiff (CF37) £155,000 8.4%
Aberdeen (AB11) £101,000 8.2%
Glasgow (G2) £158,000 8.1%
Swansea (SA1) £149,000 7.8%
Middlesbrough (TS1) £86,000 7.4%
Newcastle (NE6) £267,000 7.3%

Top Ten Regions in the UK for BTL Yields

Source: PropertyData/Sequre Property Investment – June 2022

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