The Best Buy to Let Areas in the UK (Updated for 2023)

Breaking Down the Top 10 Buy to Let Areas

Let’s explore the top buy to let areas in the UK in more depth. Each one has been placed in the list for a reason. Some are more beneficial for investors looking for capital appreciation. Others are included for their superior rental yield.

Bristol

According to recent research, Bristol is ranked as one of the best cities for long term growth with a 5-6% annual average and a total of 25% over the past 5 years. So far, in 2023, the city has increased by 8.26%.

Additionally, the city has the lowest number of long-term property vacancies and a large majority (27%) of residents rent privately.

Rental yields aren’t too bad either. In the Bristol area, yields are around 4-6%, which is above average making the city a good area if you’re looking for steady cashflow. However, there are much better areas for rental profits, as you’ll see later with some of the other areas.

HMO room prices are also higher than average here. A standard double room goes for £640/month. So, if you’re looking to get into student investment properties, this could be a good place to settle. Especially given the size of the student population in the city.

Oxford

Oxford is another good area for landlords looking for capital appreciation on their properties. It currently has an average annual growth rate of 4% with a 5-year average of 16%.

Rental yields are good in this area as well, sitting around 4-6% depending on the type of property you’re investing in. Studios yield the highest in this area, achieving an average of 6%.

HMO room prices are high as well in Oxford and with both Oxford and Oxford Brookes nearby, there will be plenty of students to fill the rooms. A standard double with a shared bathroom rents for £604/month. With a student property with 5 rooms, you could be making £3000/month.

Manchester

Manchester has always been a popular place to invest for a reason. The city has experienced large growth over the past 5 years, achieving a total percentage increase of 22%.

Additionally, yields are much higher here thanks to the lower house price. You can expect to achieve a rental yield between 4-7% depending on the property type you invest in. 3-bed properties achieve the highest yields of 7.2%.

The city also has a good student population like the cities above, making it excellent for HMO investors. Room prices are slightly lower than the southern cities, with standard double bedrooms earning around £560/month

Luton

Luton is a surprising location to have on this list, but it has been making investors good money in recent years. The city has increased annually by an average of 4% and has experienced a 13% increase over the past 5 years.

Yields aren’t as good as other locations on this list, sitting around 5%. Still, this is higher than the national average of 3% and means investors can still make good cashflow from their properties in Luton.

Unlike the above areas, Luton doesn’t have a large student population, so HMOs and student investment properties might not work as well here.

Bradford

If you’re looking for both large capital appreciation and huge yields, Bradford is the place to go. The area has experiences incredible growth over the past year, averaging an annual increase of 7%. Based on a 5-year timeframe, Bradford has grown by 19%.

It’s not just the capital growth that is impressive. The yields in this location are huge due to the lower property prices. In BD1, yields exceed 12% for some properties. In the wider area, yields still sit around 7% with fluctuation depending on property type and room number.

Bradford is an excellent place to invest for new investors due to the cheap prices and high yields. Plus, you can still make good gains through property growth.

Middleborough

Middlesborough is another high yield location for investors looking for strong cashflow. Yields here can reach high percentages of 9% and above. This is a result of lower house prices in this region. Something you tend to find with Northern towns and cities.

Growth in the area is strong as well, with homes growing by 5% on average year-on-year. 5-year growth is substantially lower than other areas on this list, sitting at just 9%.

Liverpool

Liverpool has been a strong investment for a number of years due to recent developments in places like the Knowledge Quarter and Baltic Triangle.

The area has experienced tremendous growth over the past, averaging 7%. Over a 5-year period, Liverpool has averaged 12%. Not bad if you’re chasing capital appreciation.

Yields in Liverpool, especially L1, are incredibly high. You can expect to be earning an average of 9% from investment properties.

Currently, studios are earning as much as 13%! Although the overall monthly cashflow on studios is lower, you can still make a strong ROI with this property type.

Sunderland

Another Northern city that is producing high rental yields and strong capital growth is Sunderland.

The city is currently boasting an average rental yield of 11%, which is substantially higher than many of the larger Southern cities on this list. When you widen the scope, yields still stay high with 8% being achievable with some 2-bed properties.

House price growth has remained strong as well over the last few years, with 12-month growth hitting 9%. 5-year growth isn’t as strong as other location though, with percentages only hitting 9%.

London

London has been dropping for some time in the list of best areas for buy to lets. However, it still grabs a spot due to the strong growth it has had over the past few years. Additionally, the city experiences long-term rental periods and there is a high demand from tenants.

Not only has house prices jumped up by 25% over the past 5 years, but the city also has one of the largest number of private renters in the country. Private renters make up 29% of the city’s population.

Although there is plenty of stability in London for landlords, be aware the yields are much lower than other cities on this list. Especially when compared against Northern cities.

Additionally, you’ll need a lot of capital to start investing in London. The city isn’t for the novice investor with shallow pockets as average house prices are round £754,000.

Glasgow

If you’re after something out England, checking out Glasgow for investment opportunities is a good start. With strong rental yields and cheap property prices, this is an excellent location for investors looking for good monthly cashflow.

Rental yields are currently sticking around 7% on average, with fluctuations depending on room size. Prices still remain low in Glasgow, making it superior for investors who are just starting out.

High Rental Yields vs Capital Appreciation

Judging which area is the best for buy-to-lets in the entire UK is very difficult. There are lots of factors to consider, such as rental yield, price growth, the renting population, etc. Plus, landlords have different goals.

Some landlords want a good long-term return on their investment through property growth. Others want short-term cashflow through high rental yields. There is no better options. It is entirely personal preference.

The above options cater to both those schools so thought. So, pick the one that works with your current investment goals.

Summing it up

So, there you have it. The best buy-to-let areas in the UK. The areas above vary widely on both location, property price, and potential rental yield. They all have their benefits and limitations, so pick the city that suits your skill level, bank account, and investing goals.

If you want to learn more about buy-to-let investing, explore our knowledge centre for more.

Related Reading

• What is considered a good rental yield?

• How to build a portfolio with just £50,000