The UK’s best rental markets for buy-to-let landlords

December 10, 2019

Lettings management platform, Howsy, has revealed the most appealing markets for UK landlords based on the annual rental return available as a percentage of the property investment cost.

Howsy looked at the average annual rent in every area of the UK and what it equates to as a percentage of the cost of a property to find the areas that provide a better than average rental return as a proportion of overall house price.

Across the UK the current annual rent of £11,436 accounts for 4.9% of the average UK house price (£234,370).

But where in the UK sits way above this national average?

Scotland is home to the highest rental incomes as a proportion of property price

Scotland seems to be the place to invest for landlords, with 18 out of the top 20 areas with the highest annual rent as a proportion of house price located north of the border.

Glasgow tops the table with the annual rent of £10,596 accounting for a huge 7.7% of the average house price, closely followed by Inverclyde (7.1%), Midlothian (6.9%) and West Dunbartonshire (6.9%).

Burnley is the highest outside of Scotland and across England at 6.5%, with Belfast ranking 10th (6.2%), while County Durham and Blackpool place 17th and 18th (5.7%).

Founder and CEO of Howsy, Calum Brannan, commented:  

“There are a whole host of costs to account for when investing in a buy-to-let property but the most important is, of course, the rental income available.

However, high rental income doesn’t necessarily mean an area offers the best investment option and if it requires a high initial cost to buy the property, you could be recouping that investment for longer than you might in other areas with a lower rental income.

It’s about finding that balance and areas such as Glasgow not only offer a relatively affordable property cost to begin with, but the rental income available as a proportion of house price is far higher than anywhere else in the UK.”

Ranking: Highest rent as a percentage of house price in the UK
Location
Average House Price
Average Rent (annual)
Rent as % of Average House Price
Glasgow
£137,952
£10,596
7.7%
Inverclyde
£105,984
£7,476
7.1%
Midlothian
£187,531
£13,008
6.9%
West Dunbartonshire
£109,087
£7,559
6.9%
Burnley
£84,598
£5,496
6.5%
East Ayrshire
£101,042
£6,336
6.3%
Falkirk
£129,803
£8,124
6.3%
Dundee
£127,379
£7,920
6.2%
Clackmannanshire
£130,940
£8,124
6.2%
Belfast
£133,620
£8,280
6.2%
Moray
£145,701
£8,820
6.1%
Aberdeen
£148,021
£8,820
6.0%
Renfrewshire
£126,620
£7,476
5.9%
North Ayrshire
£108,525
£6,336
5.8%
South Lanarkshire
£129,643
£7,536
5.8%
North Lanarkshire
£109,094
£6,339
5.8%
County Durham
£103,320
£5,916
5.7%
Blackpool
£109,558
£6,252
5.7%
Na h-Eileanan Siar
£130,726
£7,416
5.7%
Hyndburn
£100,019
£5,652
5.7%
United Kingdom
£234,370
£11,436
4.9%

Properganda PR

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

You May Also Enjoy

Breaking News

Solutions to fix construction skills

The Centre for Social Justice (CSJ) has released a report titled, ‘Skills to Build: Fixing Britain’s construction workforce crisis.’ After speaking to several organizations and having roundtables to garner a wide understanding of the sectors’ perspectives and needs, they have proposed twenty six recommendations that will fix the issues underpinning the skills crisis. Richard Beresford,…
Read More →
Breaking News

Budget Commentary – Mansion Tax, Business Rates & Planning Reform

Andrew Teacher, Co-founder at LauderTeacher, one of the UK’s leading advisors on real estate communications, investor relations and a former spokesman for the BPF, comments on the potential Budget. Mansion tax “Nobody likes paying tax, but the reality is a council tax revaluation is long overdue. Rather than distorting the market, which is what a…
Read More →
Rightmove logo
Breaking News

Budget 2025 market data & home-mover and agent insight

Speculation about property tax changes is fuelling uncertainty across much of the market Rightmove research found that home-movers would favour staggered stamp duty payments, while a poll of estate agents also suggested that staggered payments would be a preferable change to shifting payment to the seller Rightmove data on rumoured property tax changes Mansion Tax…
Read More →
Breaking News

Breaking Property News 24/11/25

Daily bite-sized proptech and property news in partnership with Proptech-X. Symple resolves four core issues in the new Renter’s Rights Act Automating compliance in the new PRS landscape   The Renters’ Rights Act has raised the bar for private landlords in England in terms of property condition, hazard resolution, evidence of compliance and regulatory registration. Symple…
Read More →
Breaking News

What does Rachel Reeves have in store for the UK property market?

With the Autumn Budget now just days away, speculation is mounting that the Chancellor, Rachel Reeves, will use property taxation as a central tool to address the widely reported fiscal shortfall of between £20bn and £40bn. As a result, the housing market has entered a period of caution, with asking prices falling 1.8 percent in…
Read More →
Letting Agent Talk

Why Property Guarantors Need Legal Advice Before Signing

When it comes to property deals, it’s natural to look for additional support, especially when you’re not fully confident about meeting the terms of the agreement. This is where a guarantor comes into play, as they step in to give the property owner some assurance. The idea of helping someone you trust can feel quite…
Read More →