28th October 2017

Liverpool hits top spot for BTL rental leads

New research from Private Finance has revealed that the UK’s top BTL hotspot is now Liverpool, delivering landlords average rental yields of 8%, once mortgage costs are taken into account.

As housing and mortgage costs have the biggest influence on yield, Liverpool takes the top spot as it has a combination of low average house prices at £122,283 and strong rents at £1,021 per month.

Nottingham comes second, with a rental yield of 5.6%, followed by Coventry at 5.4%, then Greater Manchester at 4.3% and Portsmouth at 4.2%. Cardiff, Blackpool, Lincoln are next with rental yields of 3.9% each. Bournemouth and Southampton make up the rest of the top 10 with rental yields of 3.8% and 3.7% respectively.

According to the research, which calculated rental yields in the 50 UK towns and cities with the highest proportion of private rental housing stock, six out of 10 of the areas with the lowest house prices are also in the top 10 list for best rental yields. Within the top 10 buy to let hotspots, average annual interest- only mortgage costs vary significantly from £5,940 in Blackpool to £13,548 in Bournemouth.