The UK’s best rental markets for buy-to-let landlords

December 10, 2019

Lettings management platform, Howsy, has revealed the most appealing markets for UK landlords based on the annual rental return available as a percentage of the property investment cost.

Howsy looked at the average annual rent in every area of the UK and what it equates to as a percentage of the cost of a property to find the areas that provide a better than average rental return as a proportion of overall house price.

Across the UK the current annual rent of £11,436 accounts for 4.9% of the average UK house price (£234,370).

But where in the UK sits way above this national average?

Scotland is home to the highest rental incomes as a proportion of property price

Scotland seems to be the place to invest for landlords, with 18 out of the top 20 areas with the highest annual rent as a proportion of house price located north of the border.

Glasgow tops the table with the annual rent of £10,596 accounting for a huge 7.7% of the average house price, closely followed by Inverclyde (7.1%), Midlothian (6.9%) and West Dunbartonshire (6.9%).

Burnley is the highest outside of Scotland and across England at 6.5%, with Belfast ranking 10th (6.2%), while County Durham and Blackpool place 17th and 18th (5.7%).

Founder and CEO of Howsy, Calum Brannan, commented:  

“There are a whole host of costs to account for when investing in a buy-to-let property but the most important is, of course, the rental income available.

However, high rental income doesn’t necessarily mean an area offers the best investment option and if it requires a high initial cost to buy the property, you could be recouping that investment for longer than you might in other areas with a lower rental income.

It’s about finding that balance and areas such as Glasgow not only offer a relatively affordable property cost to begin with, but the rental income available as a proportion of house price is far higher than anywhere else in the UK.”

Ranking: Highest rent as a percentage of house price in the UK
Location
Average House Price
Average Rent (annual)
Rent as % of Average House Price
Glasgow
£137,952
£10,596
7.7%
Inverclyde
£105,984
£7,476
7.1%
Midlothian
£187,531
£13,008
6.9%
West Dunbartonshire
£109,087
£7,559
6.9%
Burnley
£84,598
£5,496
6.5%
East Ayrshire
£101,042
£6,336
6.3%
Falkirk
£129,803
£8,124
6.3%
Dundee
£127,379
£7,920
6.2%
Clackmannanshire
£130,940
£8,124
6.2%
Belfast
£133,620
£8,280
6.2%
Moray
£145,701
£8,820
6.1%
Aberdeen
£148,021
£8,820
6.0%
Renfrewshire
£126,620
£7,476
5.9%
North Ayrshire
£108,525
£6,336
5.8%
South Lanarkshire
£129,643
£7,536
5.8%
North Lanarkshire
£109,094
£6,339
5.8%
County Durham
£103,320
£5,916
5.7%
Blackpool
£109,558
£6,252
5.7%
Na h-Eileanan Siar
£130,726
£7,416
5.7%
Hyndburn
£100,019
£5,652
5.7%
United Kingdom
£234,370
£11,436
4.9%

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Estate Agent Talk

How Technology is Changing the Prime Property Viewing Experience

The world of luxury real estate has always been about delivering a premium, personal experience. But in today’s rapidly evolving digital landscape, even the most traditional sectors are being reshaped by technology—and prime property viewings are no exception. From augmented reality to AI-driven virtual tours, the way buyers interact with high-end properties has changed dramatically.…
Read More →
Love or Hate Rightmove
Breaking News

Average two-year fixed mortgage rate for 60% LTV now cheaper than five-year rate

The average two-year fixed mortgage rate for those with a 40% deposit (60% LTV) is now cheaper than the average five-year fixed equivalent, the first time this has happened since the mini-Budget The average two-year fixed, 60% LTV mortgage rate is now 4.18%, while the five-year equivalent is 4.19% The gap between average two-year fixed…
Read More →
Overseas Property

How UK Property Investors Can Manage Exchange Rate Risk When Buying Off-Plan Overseas

Off-plan purchases are especially common in developing overseas property markets with a high proportion of international investors. In these less mature markets, a significant share of stock is sold directly by developers, making off-plan transactions a natural sales model. These opportunities appeal to international buyers because they typically require less upfront cash due to extended…
Read More →
Breaking News

Foxtons Lettings Market Index – March 2025

London rental market gains momentum as new rental listings surge, Foxtons data shows   March saw a 14% increase in new rental listings across London compared to February Applicant registrations rose by 11% month-on-month in March. Year on year, demand was stable, tracking just 2% below March 2024 levels The average rent in March stood…
Read More →
Breaking News

UK’s mid-market firms show improved business growth in March but economic uncertainty continues

Key findings: NatWest’s Mid-market Growth Tracker shows improved business growth in March, led by a strong service sector performance SMEs register a softer decline in output levels during March Market conditions remain challenging and we could see continued challenges in the coming months   Mid-market businesses continued to outperform the wider UK economy in March,…
Read More →
Breaking News

ONS Private rent and house prices UK – April 2025

The Price Index of Private Rents (PIPR) measures private rent inflation for new and existing tenancies. The UK House Price Index measures house price inflation. Main Headlines Average UK monthly private rents increased by 7.7%, to £1,332, in the 12 months to March 2025 (provisional estimate); this annual growth rate is down from 8.1% in…
Read More →