Buy to let yields boom in the North as Leeds tops the list

LANDLORDS in parts of Leeds could earn higher returns than anywhere else in the country, new research has shown.

According to comparison site TotallyMoney, Leeds topped the list, boosted by a combination of affordable properties and decent rental income, with area postcode LS6 offering yields of 10.79%. This compares to a potential rental return before costs of just under 3% across London.

Meanwhile, Bradford and York also performed highly, at 10.33% and 9.73% respectively.

In total, nine out of the 10 highest yielding postcode districts were in Scotland and the North and Midlands regions.

The 10 lowest yielding postcodes, with the exception of Edgbaston and Holland Park in Birmingham, were all in Greater London, the South East and on the South coast.

303,822 properties for sale, and 137,955 properties for rent were analysed by the firm, and the North was found to offer the best investment opportunities.

London’s offering of just 2.9% buy to let yield comes in below all other UK cities.

The UK’s lowest yields were found in the London borough of Bromley, which offers a yield of just 1.98%, as well as Kensington’s W8 postcode.

Alastair Douglas, of TotallyMoney, said: “Due to rapidly growing property prices, London is often seen as the best place to invest in property.

“However house price growth rate isn’t always mirrored in rent prices. This research shows that investors looking for high yields on rental developments might see better returns from properties in the cities of northern England and Scotland.”

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