One-beds offer the best yields across major cities

June 23, 2020

The latest research by lettings management platform, Howsy, has found that one-bed properties are now proving the best financial investment when it comes to buy to let rental yields across the UK’s major cities.

Previous research from Howsy found that three was the magic number for rental yields, offering the highest return with a rental yield of 4.3%. While this has since increased to 5% now, the latest figures show that three-beds are no longer the best investment option.

In fact, both two and one-bed properties have leapfrogged the three-bed where rental yields are concerned, with the average two-bed providing a yield of 5.6%, while one-beds now averages a return of 6.2%.

When it comes to investing in a one-bed buy-to-let, Newcastle is your best bet, with the average yield coming in at 7.9%, closely followed by Glasgow (7.7%), Liverpool (7.1%) and Plymouth (7%), all home to yields of 7% or greater.

Newcastle and Glasgow also rank along with Belfast (6.9%) as the best spots for a two-bed buy-to-let investment, with Sheffield (6.7%) and Leeds (6.4%) also proving profitable.

While if you want to stick with the trusted three-bed, Glasgow again tops the table (6.9%) among Newcastle, Belfast, Leeds and Liverpool.

Rental yields – 1-bed
Location
1 Bedroom
Newcastle
7.9%
Glasgow
7.7%
Liverpool
7.1%
Plymouth
7.0%
Sheffield
6.7%
Leeds
6.6%
Leicester
6.6%
Nottingham
6.6%
Swansea
6.6%
Portsmouth
6.4%
Aberdeen
6.3%
Newport
6.2%
Manchester
6.0%
Cardiff
6.0%
Oxford
5.8%
Belfast
5.6%
Bournemouth
5.5%
Southampton
5.4%
Cambridge
5.4%
Birmingham
5.4%
Bristol
5.3%
Edinburgh
5.2%
London
4.7%
Average
6.2%
Rental yields – 2-bed
Location
2 Bedroom
Belfast
6.9%
Glasgow
6.9%
Newcastle
6.9%
Sheffield
6.7%
Leeds
6.4%
Liverpool
6.3%
Nottingham
6.0%
Swansea
5.9%
Portsmouth
5.8%
Aberdeen
5.5%
Manchester
5.5%
Birmingham
5.4%
Newport
5.4%
Leicester
5.3%
Cambridge
5.1%
Cardiff
5.1%
Plymouth
5.1%
Edinburgh
5.1%
Oxford
5.0%
Southampton
4.9%
Bristol
4.8%
London
4.2%
Bournemouth
4.0%
Average
5.6%
Rental yields – 3-bed
Location
3 Bedroom
Glasgow
6.9%
Newcastle
6.4%
Belfast
6.0%
Leeds
5.9%
Liverpool
5.7%
Aberdeen
5.6%
Manchester
5.5%
Swansea
5.3%
Edinburgh
5.0%
Nottingham
5.0%
Birmingham
5.0%
Sheffield
5.0%
Portsmouth
4.9%
Bristol
4.6%
Oxford
4.5%
Southampton
4.5%
Cardiff
4.5%
Newport
4.4%
Plymouth
4.3%
Leicester
4.1%
Cambridge
3.9%
London
3.9%
Bournemouth
3.0%
Average
5.0%
Rental yields – 4-bed
Location
4 Bedroom
Glasgow
6.9%
Edinburgh
6.4%
Leeds
4.8%
Newcastle
4.7%
Bristol
4.7%
Belfast
4.4%
Aberdeen
4.4%
Liverpool
4.4%
Birmingham
4.3%
Manchester
4.3%
Nottingham
4.0%
Southampton
3.9%
Portsmouth
3.9%
London
3.8%
Leicester
3.7%
Cardiff
3.7%
Sheffield
3.6%
Newport
3.6%
Oxford
3.5%
Cambridge
3.5%
Plymouth
3.4%
Swansea
2.9%
Bournemouth
1.8%
Average
4.1%
Rental yields – 5-bed+
Location
5 Bedroom
Glasgow
5.5%
Edinburgh
5.1%
Southampton
4.3%
Birmingham
4.2%
Nottingham
3.9%
Aberdeen
3.9%
Liverpool
3.8%
Manchester
3.5%
Bristol
3.4%
Newcastle
3.2%
Portsmouth
3.2%
Leeds
3.2%
Leicester
3.1%
Cambridge
3.1%
Sheffield
3.0%
Swansea
3.0%
Belfast
3.0%
Cardiff
3.0%
London
3.0%
Plymouth
2.6%
Newport
2.5%
Oxford
2.1%
Bournemouth
1.6%
Average
3.4%

Properganda PR

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

You May Also Enjoy

Breaking News

UK house prices growing by 2.5% according to Halifax

Nathan Emerson, CEO of Propertymark: “This slight dip in house prices will likely have been influenced as a direct consequence to the current state of the global economy. There will always be a need for people to move house regardless of international trading relations; however, many aspiring or current homeowners will no doubt be discouraged…
Read More →
Breaking News

UK house prices dip slightly in May, but market remains steady

Average property price now £296,648 compared to £297,798 last month Annual rate of growth slows to +2.5% from +3.2% in April Overall house prices have remained stable so far this year Northern Ireland continues to lead annual price growth in the UK Amanda Bryden, Head of Mortgages, Halifax, said: “Average UK house prices fell by…
Read More →
Breaking News

Estate Agent Content

Do you think that your estate agency / property business requires content? Is content marketing still a thing in 2025? Are you concerned if anyone will read your words? Is it worth investing in estate agent content? Businesses with blogs generate 67% more leads than those without. As competition for attention online increases it remains…
Read More →
Breaking News

The cost of voids rises by £200 for England’s landlords

The latest analysis by Dwelly, one of the UK’s leading lettings acquisition and success planning experts, has found that landlords have been hit with a 26% increase in the cost of void periods in the past year, equivalent to lost income of almost £200. Dwelly analysed average void period data from March 2024 and March…
Read More →
Breaking News

Breaking Property News 5/06/25

Daily bite-sized proptech and property news in partnership with Proptech-X. Demand Rises for Housing and Infrastructure Projects Rising demand for housing, infrastructure and energy projects across Wales has driven continued growth at Lichfields’ Cardiff office, which this year marks 25 years in the capital. The team of 17 planning professionals is one of the largest…
Read More →
Breaking News

Construction continues to enjoy a season in the sun

Underlying performance is on the rise during Q.2 2025 Today, Glenigan, one of the construction industry’s leading insight experts, releases the June 2025 edition of its Construction Index. The Index focuses on the three months to the end of May 2025, covering all underlying projects, with a total value of £100m or less (unless otherwise…
Read More →