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

Letting Agent Talk

The pros and cons of renting to students: is it the right choice for you?

Student properties are no different in term of quality and facilities than any other type of private rental. And although landlords may have to spend a fair amount on setting up and properly maintaining student lets, they can also charge a good market rent. To help you decide whether letting to students might be worthwhile…
Read More →
Finance

Autumn Budget Misses Mark on Housing Reform: UK Rental Market Squeezed by Shortages and Rising Rents

The UK rental market faces mounting pressures, with a recent Rics survey revealing a critical shortage of properties and surging rent prices. Landlord instructions, a key indicator of properties available to rent, fell to a net balance of -29%, marking this the lowest level since 2021. Strong tenant demand is driving rents higher, with 33%…
Read More →
Estate Agent Talk

Save a house deposit faster than ever in THESE areas!

Save a house deposit faster than ever in THESE areas! Aberdeen City in Scotland is named the best place to live if you want to save for a house deposit fast, saving in as little as a year and a half Inverclyde is second, whilst Burnley is third Average salaries and house prices in each…
Read More →
Estate Agent Talk

Finding Your Dream Home: Expert Advice from Camberley’s Top Estate Agents

Finding the right estate agent is crucial when navigating the competitive housing market in Camberley. With local expertise and in-depth market knowledge, these professionals can guide you toward your ideal property, saving you time and effort. Their understanding of the area’s nuances, from property trends to community relationships, positions them as indispensable allies in your…
Read More →
Breaking News

Zoopla reveals most affordable towns in Britain

With the average home valued at nearly four times average household incomes, Zoopla reveals the most affordable towns in Britain   An average property in Britain is valued at 3.8 times the average annual household income (assuming 2 full-time workers) Cumnock in Scotland, is Britain’s most affordable town to buy in 2024 with average property…
Read More →
Software & Tech

The Evolving Nature of Real Estate and Strategies for Agency Success

Real estate agents are used to working with fluid market dynamics. Adapting their sales strategies and responding to new industry demands is almost second nature to most agencies today. However, while making the necessary adjustments when following housing market trends is important, it’s also important for agencies to consider new business innovations that become available…
Read More →