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

Residential projects remain under pressure

Infrastructure keeps UK construction moving through a sluggish spell Residential and non-residential projects remain under pressure, while infrastructure and utilities work give the industry a much-needed lift The value of underlying work starting on-site during the latest three months declined 2% and stood 18% below last year’s levels. Residential construction starts fell 8% against the…
Read More →
Breaking News

Homebuyers hold tight ahead of Autumn Budget

but should they wait to make their move?   The latest research from Yopa has revealed that mortgage market activity has reversed in recent months, with approvals falling at an average monthly rate of 3.9% over the last four months, having previously increased by an average of 1.5% per month over the previous four months, suggesting…
Read More →
Breaking News

House price growth accelerates in Q2

The latest Property Market Index Review by London lettings and estate agent, Benham and Reeves, has revealed that the property market continued to build momentum during the second quarter of 2026, with UK house prices increasing by 1.1%, while London recorded a second consecutive quarter of positive growth.   The Benham and Reeves Market Index Review…
Read More →
Breaking News

House prices hold steady despite impact of higher interest rates

House prices were unchanged in September (0.0%), following a -0.3% fall in August The average property price is now £298,441, compared to £298,395 in August Prices were also unchanged annually (0.0%) compared with September last year Northern Ireland continues to lead UK annual growth, at +7.4% Latest first-time buyer prices reveal what a 2.5% deposit…
Read More →
Breaking News

Breaking Property News 5/10/26

Daily bite-sized proptech and property news in partnership with Proptech-X. Architect-founded KnowYourNest brings property scores into the home search, with a free 1–10 score and full KnowYourNest reports from £9.95 By Author Andrew Stanton CEO Proptech-PR NestLink today launches free NestScore checks and KnowYourNest property intelligence reports for buyers and homeowners across England and Wales.…
Read More →
Breaking News

Gap between house prices and earnings narrows

Gap between house prices and earnings narrows – but higher borrowing costs limit affordability gains UK’s house price to income ratio falls from 7.6 to 7.3, an 11-year low, as earnings continue to outpace house price growth For first-time buyers, homes now cost less than six times earnings, falling from 6.1 to 5.9 However, monthly…
Read More →