Top buy-to-let hotspots in the UK as lending surges by almost 40%

Buy-to-lets have become less and less attractive in the last few years, but there are still some areas where landlords can realise rental yields of over 10%. We look at the UK’s buy-to-let hotspots.

Keys being handed to a woman
(Image credit: d3sign via Getty Images)

Becoming a buy-to-let landlord has grown increasingly difficult in recent years as rental yield growth has slowed while house prices have increased.

The average price of a house in the UK in June was £296,665, according to Halifax’s house price index, an increase of around 2.5% compared to last year.

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Rank

Postcode

Weighted rental yield

Most common type of property

1

CF24 (Cardiff)

8.90%

Terraced House

2

PL4 (Plymouth)

10.20%

Terraced House

3

LE11 (Loughborough)

8.00%

Terraced House

4

NG7 (Nottingham)

8.50%

Terraced House

5

GL1 (Gloucester)

9.60%

Terraced House

6

HU5 (Hull)

9.30%

Terraced House

7

LS6 (Leeds)

8.20%

Terraced House

8

M14 (Manchester)

8.10%

Terraced House

9

B29 (Birmingham)

7.70%

Terraced House

10

ST4 (Stoke-on-Trent)

10.10%

Terraced House

Daniel is a digital journalist at Moneyweek and enjoys writing about personal finance, economics, and politics. He previously worked at The Economist in their Audience team.

Daniel studied History at Emmanuel College, Cambridge and specialised in the history of political thought. In his free time, he likes reading, listening to music, and cooking overambitious meals.