Liverpool’s L7 postcode provides the highest yields in the country according to Mojo Mortgages, who analysed data from the UK Land Registry, Zoopla, On The Market and PropertyData.co.uk.
The L7 postcode generates an average yield of 10.3% with an average asking price of £95k.
Bradford BD1, Sunderland SR1 and Middlesbrough TS1 follow Liverpool L7, with yields of 10%, 9.40% and 8.80% respectively.
Even postcodes towards the lower end of the top 20, such as those in Aberdeen and Glasgow are returning yields of 7%.
Five more Liverpool postcodes feature in the top 20, with yield returns ranging from 7.40% to 10.30%.
In Bradford, with the BD1 postcode returning a rental yield of 10%, the average asking price is £57,000.
Properties in the City of London and its surrounding boroughs generate the lowest yields in the UK, while average prices to buy are above the £1,000,000 mark.
The South East also features in the list of the worst BTL postcodes, likely due to areas such as Wokingham, Chiltern and Horsham being commuter hotspots, rather than areas to rent in.
Stratford-upon-Avon is the only location from the West Midlands to feature in the bottom 10, with an average yield of 2% and asking average prices at just over half a million.
IG11 in the London borough of Barking offers the best rental yield in the capita, and average asking prices of £289,374.
Dagenham features three times in top 10 BTL postcodes within London, with areas such as Becontree and Becontree Heath also generating yields of more than 5%.
Originally reported in: https://www.mortgageintroducer.com/mojo-liverpool-l7-btl-yield/
Matt Lenzie from Commercial Mortgages Broker said: “it’s interesting to see the yield splits, unsurprisingly Liverpool provides some of the most attractive yields in the country, it would be a useful exercise to compare the capital growth against the yields, to see who would be ahead after a 10 year period, I’ve got a feeling that it would probably be in the midlands somewhere!”