Manchester and Salford see biggest rise in rental yields

Manchester and Salford see biggest rise in rental yields

At the end of 2016, towns in England’s North and Scotland saw the biggest increase in rental yields, hitting up to 4.3% whilst London averaged out at 3.2%.

Properties across Manchester and Salford saw average yields of 6.7% and 6.6%, while Cambridge only climbed up to 2.7%, the latest buy-to-let index revealed.

Meet your property hotspots for 2017: Manchester, Birmingham and Edinburgh

To get the data, peer to peer lending platform Kuflink analysed the average house price and rent in 50 of the country’s major towns and then figured out the average rental yield for every single location.

Manchester came out as Number One with an average rental yield of exactly 6.73% and was closely followed by neighbouring Salford at 6.68%.

Other areas in the North followed the same trend as the two bigger cities, which led the North overall to show the biggest rental yield growth in the UK.

The cities in the North significantly outperformed London. Although rental costs are extremely high in the capital, house prices have seen a constant increase too and sat at an average of £680,000 in December 2016. This leaves London’s buy-to-let landlords with rather unimpressive returns.

The research also revealed that there are now less than 41,000 properties available in the Uk for £250,000 or less. This is a drop from 58,000 (-29%) since October. Narrowing this down even more, there are now fewer than 2,000 properties for under £250,000 available in London.

Manchester property prices will grow 28.2%

“Buy to let properties in the North can be a steady investment, attracting renters who cannot afford to step onto the property ladder and therefore choose to rent in good locations, which are well-suited to their lifestyle,” said Tarlochan Garcha, chief executive officer of Kuflink.

“Manchester and Leeds are both bustling cities, popular with young professionals and families, and can offer solid returns for landlords. While Birmingham, which has a growing business district and is soon to benefit from HS2, cutting journey time to London to just 49 minutes, is also firmly on the map as a strong buy to let spot. It could be time for landlords to turn their attention away from pricey London and look to the UK’s regional cities.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT