Recent data from Property Industry Eye reveals that buy-to-let landlords continue to see a wide disparity in rental yields across England. Northern cities like Liverpool and Manchester remain attractive for investors chasing higher returns, with gross yields often exceeding 6%. This contrasts sharply with London, where yields have softened to around 3.5% due to high property prices outpacing rental growth.
Our own analysis at Prop AI Deals confirms this pattern. Areas with lower entry prices but steady rental demand, such as parts of the North West and Yorkshire, provide a better income-to-investment ratio. Meanwhile, southern regions, particularly commuter belts around London, show moderate yields but benefit from capital appreciation potential, which some investors still prioritise.
The data suggests landlords focusing purely on rental income should look beyond the South East and capitalise on the affordability and rental demand in northern urban centres. However, investors must weigh this against factors like tenant demand stability, local economic conditions, and potential regulatory changes, which vary regionally.
In summary, the strongest rental returns are not found in the traditional hotspots of the South but in northern cities where property prices have not escalated as sharply. This divergence offers a clear signal for landlords targeting income-driven buy-to-let strategies.
Source: Property Industry Eye
