One-beds offer the best yields across major cities
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%
|
You May Also Enjoy
Volume doubles as property market sees strong return of new applicants
Property valuation leads to agents up 50% on last year
Worst areas for landlord eviction waiting times
726,000 rented homes could remain non-decent by 2035
UK House Price Index for December 2025
