Buy-to-let investors are achieving estimated gross rental yields approaching 7% in some areas of England, according to new research from The Letting Partnership. Northern cities continue to offer some of the strongest returns.
The analysis indicates an average nominal rental yield across England of 5.9%, based on an average property price of £293,262 and a monthly rent of £1,446.
Newcastle upon Tyne leads the analysis with an estimated yield of 6.9%, calculated from an average property price of £208,589 and a monthly rent of £1,206. Portsmouth and Manchester both recorded estimated yields of 6.5%, while Southampton and Tower Hamlets in London stood at 6.4%.
Bristol, Blackpool, and Nottingham each showed estimated yields of 6.3%, followed by Lincoln and Kingston upon Hull at 6.2%. The figures highlight ongoing variations in buy-to-let returns, with some more affordable regional markets producing stronger yields than areas with substantially higher property values.
In contrast, Westminster has an average monthly rent of £3,168 but an estimated nominal yield of 4.5%. Kensington and Chelsea recorded the highest average monthly rent in the analysis at £3,596, yet its estimated yield was just 3.5%.