Landlords Urged To Look North

Statistics and Reports

Despite continuing changes in landlord tax relief and greater landlord responsibilities, research carried out by TotallyMoney shows a good number of UK postcodes return healthy profits for property investors.

For an Interactive map and full analysis click here

Top 25 UK buy-to-let postcodes

Liverpool’s L1 boasts a strong 10% profit margin, smashing the 3% yield many of the UK’s postcodes offer. In L1, landlords snap up a property for an average of £90,000 and support their investment with a significant asking rent of £750 per month.

But it’s not just Liverpool that’s doing well. Landlords may want to keep gazing North. Completing the top three is Falkirk’s FK3 and Glasgow’s G52, returning 9.51% and 8.71% yields respectively. And 16 of the top 25 postcodes are in the North West (predominantly Liverpool) and Scotland.

That said, the North East also has some top performers. TS1 and TS3 in Cleveland rank fifth and 12th respectively, while Sunderland features twice (SR8 and SR5), and Gateshead’s NE8 has a 7.27% yield —putting it in 18th position.

The majority of the strongest UK postcodes return a yield of 7%. These include Leeds’ LS2 (7.92%), Cardiff’s CF43 (7.61%), Aberdeen’s AB11 (7.20%) and Lancaster’s LA14 (7.06%).

Rank Postcode Postcode Town Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield

Rank Postcode Postcode Town Properties for Rent Median Rental Value Properties for Sale Median Asking Price Yield
1 L1 Liverpool 187 £750 368 £90,000 10.00%
2 FK3 Falkirk 30 £495 39 £62,450 9.51%
3 G52 Glasgow 46 £595 66 £82,000 8.71%
4 L11 Liverpool 55 £650 31 £90,000 8.67%
5 TS1 Cleveland 65 £425 34 £60,000 8.50%
6 KA1 Kilmarnock 68 £450 75 £64,995 8.31%
7 L6 Liverpool 153 £575 59 £85,000 8.12%
8 LE1 Leicester 176 £667 116 £100,000 8.00%
9 LS2 Leeds 111 £825 32 £125,000 7.92%
10 S1 Sheffield 219 £750 68 £115,000 7.83%
11 CF43 Cardiff 36 £425 35 £67,000 7.61%
12 TS3 Cleveland 60 £475 63 £74,975 7.60%
13 L2 Liverpool 115 £850 106 £135,000 7.56%
14 PA3 Paisley 42 £425 43 £68,500 7.45%
15 L3 Liverpool 282 £740 360 £119,950 7.40%
16 SR8 Sunderland 85 £450 143 £73,725 7.32%
17 G51 Glasgow 74 £595 31 £97,500 7.32%
18 NE8 Gateshead 148 £575 75 £94,950 7.27%
19 AB11 Aberdeen 173 £600 45 £99,995 7.20%
20 G67 Glasgow 57 £450 65 £75,000 7.20%
21 G32 Glasgow 46 £475 76 £79,995 7.13%
22 L4 Liverpool 136 £475 94 £80,000 7.13%
23 G21 Glasgow 30 £550 31 £92,995 7.10%
24 LA14 Lancaster 50 £500 128 £85,000 7.06%
25 SR5 Sunderland 46 £495 40 £84,950 6.99%

Weak performing postcodes for investment property

Many well-known commuter belt areas have the lowest yields. At the very bottom is AL5 in St Albans. The average buying price for a property is £800,000, and asking rent is £1,300 per month. Total yield: just 1.95%.

This puts it below London’s W8 postcode (Kensington), which still manages to squeeze out a 2.05% return for landlords even though average property prices are a hefty £1,962,500.
Other commuter spots in the bottom 10 include RG10 in Reading (2.26%), GU10 in Guilford (2.22%) and KT7 in Kingston upon Thames (2.20%).

Guiding property investors to buy-to-let success

Spokesperson for credit experts TotallyMoney, James McCaffrey, comments on the findings: “Many existing and would-be landlords wonder if buy-to-let is still worth it. Our findings are another source to help property investors answer that question.

“The maps and data clearly show there are pockets of profit for landlord investment this year. And it seems that Scotland and the North are good places to start a buy-to-let property search.

“Landlords should always do their research before committing to a property purchase. Understanding current market trends is part of that. Making sure they’re financially prepared is another.

“To negotiate the best mortgage rates, investors need a clear knowledge of where they stand in the credit market. A free credit report from TotallyMoney can help. It gives property investors a detailed picture of their credit rating so they can make sure they’re in the strongest financial position before applying for a mortgage.”

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