StripeHomes researches regions with best rental yields in England
The North of England currently provides the most valuable investment opportunities, research from StripeHomes shows.
Birmingham and Newcastle-based property developer StripeHomes has examined where buy-to-let landlords can find the best rental yields in England.
Regional average rental yields
Looking at regional data, the best buy-to-let yields can be found in the North East. The region is currently home to an average house price of £144,032 and an average rent value of £566 per month. The rental yield is 4.7%, above the national average of 3.9%.
Second on the list is Yorkshire & Humber, where the average house price is £179,408 and the average rent is £631 per month, providing a rental yield of 4.2%.
Third place goes to the North West, which has an average yield of 4.2%, followed by London, where high house prices are matched by high rent values to create a yield of just under 4%.
Rounding off the top five is the West Midlands, where an average house price of £216,973 meets an average rent value of £697 per month to create a rental yield of 3.9%.
The current average yield in each region of England
| Location | Average house price April 2021 | Average rent per month March 2021 | Rental yield |
| North East | £144,032 | £566 | 4.72% |
| Yorkshire and The Humber | £179,408 | £631 | 4.22% |
| North West | £183,299 | £636 | 4.16% |
| London | £491,687 | £1,623 | 3.96% |
| West Midlands Region | £216,973 | £697 | 3.85% |
| East Midlands | £213,308 | £660 | 3.71% |
| South West | £279,951 | £840 | 3.60% |
| South East | £341,358 | £999 | 3.51% |
| East of England | £313,964 | £889 | 3.40% |
| England | £268,380 | £864 | 3.86% |
| Sources | Gov.uk – UK House Price Index | Office for National Statistics – Private Rental Market Summary |
Rental yields of towns and cities
Taking a closer look at the rental yields of individual town and cities, the best rental yields for buy-to-let landlords in England are found in Newcastle-upon-Tyne. With an average house price of £177,821 and average monthly rent of £844, the city offers a rental yield of 5.7%.
Blackpool is close behind with an average house price of £116,939 and an average rent of £540 per month, creating a rental yield of 5.5%.
Stoke-on-Trent can also provide a rental yield of 5.5%, while Burnley in Lancashire and Knowsley in Merseyside both offer rental yields of 5.4%.
The areas of England with the highest average rental yield at present
| Location | Average house price April 2021 | Average rent per month March 2021 | Rental yield |
| Newcastle upon Tyne | £177,821 | £844 | 5.70% |
| Blackpool | £116,939 | £540 | 5.54% |
| Stoke-on-Trent | £120,043 | £547 | 5.47% |
| Burnley | £105,618 | £477 | 5.42% |
| Knowsley | £142,030 | £641 | 5.42% |
| Hyndburn | £107,148 | £482 | 5.40% |
| Sunderland | £126,520 | £541 | 5.13% |
| County Durham | £117,576 | £502 | 5.12% |
| Barrow-in-Furness | £131,544 | £560 | 5.11% |
| Salford | £182,091 | £770 | 5.07% |
| Manchester | £203,169 | £838 | 4.95% |
| Pendle | £120,840 | £498 | 4.95% |
| Newham | £382,016 | £1,536 | 4.82% |
| Blackburn with Darwen | £127,154 | £511 | 4.82% |
| City of Nottingham | £172,540 | £682 | 4.74% |
| Preston | £143,743 | £568 | 4.74% |
| Barking and Dagenham | £312,288 | £1,226 | 4.71% |
| Middlesbrough | £125,115 | £490 | 4.70% |
| Stockton-on-Tees | £146,819 | £573 | 4.68% |
| City of Bristol | £306,482 | £1,196 | 4.68% |
| Sources | Gov.uk – UK House Price Index | Office for National Statistics – Private Rental Market Summary |
James Forrester, Managing Director of StripeHomes, comments: “It’s great to see a number of areas presenting strong yields to buy-to-let investors despite the government’s best efforts to reduce profit margins in an attempt to disincentivise landlords and free up housing stock for general homebuyers.
“As the backbone of the rental market, the buy-to-let sector plays an incredibly important role in providing many with a place to live, but we simply can’t expect the nation’s landlords to provide this service at a loss.
“However, the year ahead looks positive and with travel restrictions lifting, a return to face-to-face teaching at universities as well as a return to the physical workplace, increasing demand should help boost many areas of the market.”
