Report Shows Liverpool and North West Have the UK’s Best Rental Yields

September 12, 2020

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Article Summary

Liverpool
  • Liverpool is the most desirable location for buy-to-let property investment opportunities, with the city’s postcodes appearing multiple times in the top 20 list.

  • With a massive average rental yield of 10.3%, Liverpool’s L7 postcode comes out on top. This is partly due to the low property prices here, averaging just £95,000.

  • Manchester’s M14 postcode also appeared in the top 20 list, with average rental yields of 7.6%.

A recent report from online mortgage broker Mojo Mortgages has revealed that the UK’s best area for rental yields and property investment opportunities is Liverpool and the wider north west of England. 

The report, which took findings from the UK Land Registry, Zoopla, On The Market and Property Data figures, was conducted between May 18th and 25th and therefore takes account of the coronavirus situation.

Property investment opportunities – High yields in Liverpool

The findings show that Liverpool is the most desirable location for buy-to-let property investment opportunities, with the city’s postcodes appearing multiple times in the top 20 list.

With a massive average rental yield of 10.3%, Liverpool’s L7 postcode comes out on top. This is partly due to the low property prices here, averaging just £95,000.

Other Liverpool postcodes that performed well were: L6 with average yields of 8.4% L1 at 8.1%, and L15 and L4, which both have average yields of 7.4%.

Northern Powerhouse boost

Liverpool wasn’t the only northern city that performed well. Thanks to the popularity of property investments in the Northern Powerhouse, the housing market here has been rapidly growing. Manchester’s M14 postcode also appeared in the top 20 list, with average rental yields of 7.6%.

The Northern Powerhouse cities have seen increasing rental demand over the past few years. With property prices remaining below the UK average in cities such as Liverpool, Manchester, and Leeds, there are huge rental yields to be made through the great property investment opportunities available here.

London worst for investors

Mojo Mortgage’s report also highlighted a north-south divide for property investors. While the north – and particularly north west – of England have some of the best opportunities for buy-to-let investors. London’s postcodes top the list for the worst rental yields in the country.

With property prices in the City of London and its surrounding boroughs exceeding the £1,000,000 mark. Rental yields in these areas are some of the lowest in the UK. When looking for new property investment opportunities, UK investors are advised to steer clear of the capital.

The return of buy-to-let mortgages

With lockdown restrictions easing, most lenders have brought their products back to market. Buy-to-let investors can now once again benefit from rising LTV levels and competitive interest rates.

The Mortgage Works has just introduced a one-year buy-to-let fixed-rate mortgage at a 1% interest rate. As a result Barclays, Skipton International, and Accord Mortgages have raised their lending limits and cut rates.

Contact North Property Group – For property investment opportunities

To find out more about property investment opportunities in Liverpool or the rest of the UK, contact North Property Group today.

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