Sunderland has recorded the highest average gross rental yield in the UK, reaching 9.3%, according to a new analysis of Zoopla data conducted by Landlord Resource. This figure is 1% higher than any other city in the UK.
The analysis also shows that average rents in Sunderland are £659, which is less than half the average rent in London. Other major UK cities, including Glasgow, Liverpool, and Newcastle, are also among the top 10 for rental yields, indicating a strong presence from Scottish and Northern English locations.
Regionally, the North East leads with an average gross yield of 7.9%, with Scotland also at 7.9% and the North West following. In contrast, Cambridge has the lowest average gross yield among major cities at 4.7%, despite its monthly rents being over £500 less than London's average. London itself has the third-lowest average gross yield at 5.1%, though specific areas like Barking and Dagenham (6.2%), Newham (6%), and Bexley (5.8%) show higher yields within the capital.
Saif Derzi, a property advisor at Landlord Resource, noted that while the data suggests strong buy-to-let opportunities in the North for return on investment, this may come at the cost of growth. He stated that housing prices in Southern England have typically risen nearly twice as fast as their northern counterparts over the past decade.