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%

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