Recent data from Property Industry Eye reveals that buy-to-let (BTL) landlords in England continue to see significant regional disparities in rental yields. The highest returns are concentrated outside London, with northern cities and some Midlands locations outperforming the capital by a clear margin. This pattern aligns with longstanding trends where lower property prices combined with steady rental demand push gross yields above 6%, often reaching 7% or more in places like Liverpool, Manchester, and Nottingham.
London’s rental yields remain subdued, frequently dipping below 4%, reflecting the capital’s high property values relative to rents. For investors prioritising income over capital growth, this creates a compelling case to look beyond the south-east. Our own platform data confirms a steady flow of investor interest shifting towards northern towns and post-industrial cities where affordability and rental demand converge.
However, these higher yields come with caveats. Some of the strongest returns are in areas with more volatile rental markets or where economic fundamentals remain fragile. Due diligence on local employment trends and tenant profiles is essential. The Midlands, particularly cities like Birmingham and Leicester, offer a balance of yield and stability, making them increasingly attractive for cautious investors.
In summary, BTL landlords chasing strong rental returns should prioritise regional hotspots outside London, focusing on northern and midland cities where yields remain robust. Yet, careful market selection and tenant risk assessment remain key to turning these returns into sustainable income streams.
Source: Property Industry Eye
