The most profitable areas for buy-to-let

Buy-to-let rental yields are dropping, but landlords can still find inflation-beating returns. We reveal where the most profitable areas for buy to let are

To let sign outside
(Image credit: Getty Images)

With property prices falling and interest rates rising, we have seen the buy to let market dwindle as landlords look elsewhere for better returns. But are some areas more profitable than others? 

Landlords have seen the value of their property portfolios reduced by higher buy-to-let rates and tax clampdowns but there are still profitable areas where you can find a decent yield.

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Swipe to scroll horizontally
LocationGross yieldAverage rentAverage property value
Central Valleys7.96%£697£100,786
Hartlepool and Stockton-on-Tees7.9%£592£85,774
South Teesside7.66%£646£96,500
Swansea7.30%£948£150,297
Coventry7.06%£1,096£179,347
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LocationGross yieldAverage rentAverage property price
Camden and City of London3.58%£2,268£672,104
West Essex3.64%£1,800£548,000
Dorset3.64%£850£270,000
Bromley3.69%£1,606£483,636
North Yorkshire County Council3.70%£779£244,000
Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.