The best places to be a long-term landlord

July 9, 2020

When it comes to being a landlord, yields play an essential role where profitability is concerned. However, one aspect of an investment that is often forgotten is the appreciation of bricks and mortar itself.

Leading lettings management platform, Howsy, has looked at which areas have been the kindest to current landlords when considering both the rental yield available and the increase in house price over the last year.

The figures show that across the UK, house prices are up just 2% annually while yields currently sit at 5%.

London is the region home to the most favourable combination with an increase of 5% in property values, while the average buy-to-let returns a 4% yield.

The North West and South West also offer a similar combination of 3% and 4% in house price growth and 5% and 4% in rental yields respectively.

While Glasgow may be home to the highest average rental yield at the moment, the best combination of yield and price growth in the UK is Rossendale. The area may have a marginally below-average yield of 4%, but with property values increasing by 18% in the last year, it’s home to the highest combination of rental income and house price growth.

The Wyre Forest is home to similar statistics. A below-average rental yield of 3% may bring a smaller monthly income via rent, but with prices up 17% in the last year, it has made an excellent all-round investment.

Pendle is home to an above-average rental yield of 6% with price growth at 13% annually, while Hackney offers current rental returns of 3% with property values up 15% annually.

Gravesham, Hyndburn, Kensington and Chelsea, Westminster, Dundee and Leicester also rank high where the combination of rental yields and house price appreciation is concerned.

Primary level – nations
Location
Annual House Price Growth
Current Average Rental Yield
Combined (For Ranking)
Northern Ireland
4%
5%
9%
Scotland
1%
6%
7%
England
2%
4%
6%
Wales
1%
4%
5%
United Kingdom
2%
5%
7%
Secondary level – regions
Location
Annual House Price Growth
Current Average Rental Yield
Combined (For Ranking)
London
5%
4%
9%
North West
3%
5%
8%
South West
4%
4%
8%
North East
2%
5%
7%
East Midlands
2%
4%
6%
South East
2%
4%
6%
East of England
2%
4%
5%
West Midlands Region
0%
4%
5%
Yorkshire and The Humber
-1%
5%
4%
Rankings – highest combination value
Location
Annual House Price Growth
Current Average Rental Yield
Combined (For Ranking)
Rossendale
18%
4%
23%
Wyre Forest
17%
3%
20%
Pendle
13%
6%
19%
Hackney
15%
3%
19%
Gravesham
15%
3%
18%
Hyndburn
12%
6%
18%
Kensington and Chelsea
15%
3%
17%
City of Westminster
13%
3%
17%
City of Dundee
11%
6%
17%
Leicester
12%
4%
16%

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