Liverpool has six postcodes listed in the 25 best areas for buy-to-let investment in the UK, including L1 in the top spot with a 10% yield.
Postcodes L1, L2, L3, L4, L6 and L11 in Liverpool all made it on TotallyMoney’s list of the top 25 buy-to-let areas in the UK. L1 city centre postcode features the best potential rental yield at 10%. There are 187 properties for rent there with a median rental value of £750 and 368 properties for sale with a median asking price of £90,000.
The five other postcodes on the list have yields ranging from 7.13% to 8.67% and median rental values from £475 to £855 per month. In this study, TotallyMoney analysed the data of nearly 500,000 properties in England, Wales and Scotland to calculate the average buy-to-let yield for specific postcodes.
Look to the north of England and Scotland for higher yields
Falkirk’s FK3, Glasgow’s G52 and Cleveland’s TS1 are in the top five with yields from 8.50% to 9.51%, and Kilmarnock, Leicester, Leeds and Sheffield each had a postcode in the top 10. The data shows the north of England and Scotland boast especially strong yields for buy-to-let investors.
James McCaffrey, from TotallyMoney, comments: “What’s clear from the maps and data is there are strong pockets of profit across the UK. Currently, the north of England and Scotland are buy-to-let hotspots, delivering consistent 7% yields or higher. New and existing landlords should check the UK property market regularly to see where good investments are.”
A buy-to-let hotspot with an exciting future ahead
With the top postcode for rental yields and the city with the most postcodes on the list, this city continues to be a prime buy-to-let hotspot. Affordable property prices and a thriving rental market make it an attractive city for property investors.
Merseyside is also home to the best yields for short-term lets. Short-term rentals in Fairfield, which is in the outskirts of the city centre, are achieving the best yields in the north-west with returns of about 27.2%.
Additionally, the city by the Mersey is undergoing billions of pounds of regeneration, including the £5bn Liverpool Waters scheme that will completely transform the waterfront. With an exciting future ahead, property investment in this city is likely to continue to be a lucrative opportunity for many buy-to-let investors.