Successful property investments are typically a mix of strategic timing and optimum location. Location is a powerful force in any property market. So, if you’re preparing to invest in the UK’s property industry by acquiring properties to let, you will no doubt want to know which locations are most fruitful and where to invest in UK property to get the most lucrative returns. Landlord Buyers have analysed the best performing areas in the UK where landlord can expect to get the best yield.
Scotland Leads the Way
The locations at the top of the high yielding list are, East Ayrshire, North Ayrshire, North Lanarkshire, West Dunbartonshire and Renfrewshire in Scotland. With a gross yield of 8.5% on average, East Ayrshire in Scotland reigns supreme as the most lucrative area for landlords. The other four top yielding locations in Scotland all produce yields ranging from 7.94% to 8.4%.
Northeast England
Northeast England is next in line in terms of high yields for landlords with figures ranging from 7.6% to 7.9%. The areas that produce these attractive yields are, Hartlepool, Sunderland and Middlesbrough. The Northwestern city of Burnley also has a reputation for producing high yields.
Wales
Wales also has some of the high yielding locations in the UK. They are, Rhondda Cynon Taf, Merthyr Tudful and Blaenau Taf. The yields for these locations range from 6.44% to 7.2%.
Worst Yielding Areas
The least profitable areas for real estate investments are surprisingly located in London, most of them producing yields below 4%. Despite the fact that there is a high demand for rental properties in London, real estate purchases there attract steep prices and this drives down the yield for investors. Unlike the areas in Scotland and Northeast England that can be acquired at lower costs.
At the lowest end of the yield spectrum is Kensington and Chelsea with a gross yield of 3.30%. Other low yielding areas include, the City of Westminster, Derbyshire Dales, Richmond upon Thames, South Bucks, New Forest, Purbeck, Ryedale, the city and county of the city of London and St. Albans.
It is important to note though that location is just one of many considerations to make when investing in real estate as a potential UK landlord. Even though a location’s yield is crucial, strategic actions are also required in order to ensure that real estate investments are fruitful.
