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Mortgage Advisor & Director
If you are thinking of getting a buy-to-let mortgage, one of your main considerations should be location. Here you will learn where the best buy-to-let areas are in the UK right now, and how to begin your mortgage application.
Where are the best areas to get a buy-to-let mortgage?
The main consideration when trying to establish the best locations for a buy-to-let investment is rental yields. The gross rental yield is a property’s annual rental income expressed as a percentage of its purchase price, so you will want an area where they are high.
At the time of writing (December 2024), the latest market data suggests that the best rental yields are currently available in Sunderland, Aberdeen and Burnley. That is according to the latest research carried out by property firm Zoopla.
Buy-to-let properties in these northern cities currently have average gross rental yields around the 8% mark. A healthy rental yield is anywhere between 6% and 8%.
Top 10 cities for rental yields
The top three best regions to get a buy-to-let mortgage in are the North East of England, Scotland and the North West of England, based on current rental yields.
The table below goes a level deeper by highlighting some of the best UK cities for investing in buy-to-let based on the average gross rental yields available there.
|
City |
Average Gross Rental Yield |
Average Monthly Rent |
Average Property Price |
|
Sunderland |
8.96% |
£626 |
£83,842 |
|
Aberdeen |
8.03% |
£689 |
£102,920 |
|
Burnley |
8.00% |
£566 |
£84,869 |
|
Dundee |
7.96% |
£774 |
£116,690 |
|
Glasgow |
7.95% |
£951 |
£143,617 |
|
Middlesbrough |
7.92% |
£613 |
£92,862 |
|
Blackburn |
7.52% |
£661 |
£105,460 |
|
Hull |
7.45% |
£612 |
£98,617 |
|
Newcastle |
7.45% |
£833 |
£134,245 |
|
7.44% |
£801 |
£129,172 |
Source: Zoopla Rental Index
Fastest growing buy-to-let areas in the UK
In addition to knowing where the best rental yields are, it is also worth noting which areas have the fastest-growing buy-to-let markets, as it may be possible to snag a bargain there. Research by Simply Business suggests Glasgow and Nottingham are the current hotspots in 2024.
The insurance provider's study highlights which cities saw the biggest growth in buy-to-let over the last year, based on the number of landlord insurance policies they sold there between 2022 and 2023, analysing data from over 100,000 customers to compile the results.
|
City |
Annual Growth |
|
Glasgow |
11.95% |
|
Nottingham |
8.90% |
|
Leeds |
8.02% |
|
Bristol |
7.97% |
|
Leicester |
7.90% |
|
Birmingham |
6.85% |
|
6.75% |
|
|
Liverpool |
5.51% |
|
Edinburgh |
5.21% |
|
4.11% |
Source: Simply Business
The data presented by Simply Business also revealed the current hotspots for portfolio landlords. Although London does not feature in the latest rankings for rental yields or annual growth, it topped the list for busiest city in terms of investment from portfolio landlords.
The UK capital was followed by Manchester, Birmingham and Nottingham, with Liverpool rounding off the top five. In summary, the biggest English cities are leading the way here.
Compare buy-to-let mortgages for free
Now that you’ve done some research into locations for your buy-to-let investment, you can explore your mortgage options for free on Teito. Our service allows you to compare buy-to-let mortgages rates across the UK and choose the one you want in real time.
Below you can choose whether to start comparing the latest rates straight away, or book at chat with one of our advisers first:
Find a better buy-to-let mortgage on Teito
Buy-to-let hotspots based on property type
The latest data on market growth from Simply Business also included information about which parts of the UK are the most popular for specific property types, such as houses of multiple occupation (HMOs). We have arranged this into the table below.
|
Property Type |
Current UK Hotspots |
|
Houses |
Nottingham and London |
|
London, Glasgow, Aberdeen, Edinburgh and Manchester |
|
|
Maisonettes & Bungalows |
London, Birmingham, Southampton, Nottingham, Norwich and Leicester |
|
London, Birmingham, Bristol, Manchester and Cardiff |
Source: Simply Business
Holiday lets
Data on the best locations for a UK holiday let property is regularly released by Sykes Holiday Cottages. According to the firm, the best areas to invest in one right now are as follows:
- Northumberland: A top trending region for 2024, with locations like Newton-by-the-Sea seeing increased interest
- The Peak District: A top performing region for holiday lets in November, with high occupancy ratings and bookings per property
- The Lake District: A popular destination for self-catering holidays, with scenic views, lakes, and walking trails
- Dorset: A coastal hotspot with the Jurassic Coast and market towns, where holiday lets generated an average of £27,000 in 2023
- The Cotswolds: According to Sykes Holiday Cottages, this is the most lucrative place in the UK to own a holiday let
Why choose Teito for your buy-to-let mortgage?
Once you have decided on a location for your buy-to-let property, you can source a mortgage and access support from a specialist broker for free through us.
Here are just some of the reasons why landlords choose us:
- You can browse the latest buy-to-let rates in seconds
- Our brokers can secure exclusive buy-to-let deals
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare rates and deals from 90+ lenders for free and speak to a broker who specialises in buy-to-let mortgages? Get started here.
FAQs
Rental yields show the amount of profit made from a buy-to-let property with the mortgage payments and running costs factored in, expressed as a percentage.
The gross rental yield offsets the cost of the property itself against the rental income, while the net rental yield takes all costs into account, including maintenance and repairs.
It is essential to take rental yields into account when planning a buy-to-let investment because you will need to know that the rental income is not only profitable, but high enough to cover unexpected costs, such as emergency plumbing repairs.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.