New research by money.co.uk reveals the best areas for landlords to invest, based on average rental yields in each UK authority.
Rental yields were calculated by analysing the average house price and rent prices in each UK authority over the last year.
The best areas for landlords to invest
The website highlights that the best place for landlords to invest is Blackpool, based on the average property value and the average rent paid. The seaside resort has an average property price of just £140,108 and an average rent price of £550.
In second place is Barrow-in-Furness. The average property price in Barrow is £141,360, with an average rental price of £550.
Completing the top three is Burnley. It has the lowest house prices in the whole country, at £121,409, although average rents are also slightly lower than the two towns above, at £450.
| Rank | Local authority | Average house price | Average rent | Rent as % of average house price |
| 1 | Blackpool | £140,108 | £550 | 0.393% |
| 2 | Barrow-in-Furness | £141,360 | £550 | 0.389% |
| 3 | Burnley | £121,409 | £450 | 0.371% |
| 4 | Hyndburn | £128,788 | £475 | 0.369% |
| 5 | County Durham | £130,414 | £475 | 0.364% |
| 6 | Manchester | £234,841 | £850 | 0.362% |
| 7 | Barking and Dagenham | £354,052 | £1,275 | 0.360% |
| 7 | Gateshead | £152,857 | £550 | 0.360% |
| 9 | Newcastle upon Tyne | £195,610 | £700 | 0.358% |
The study also found that the UK authority with the biggest ten-year house price growth is Thanet. Average house prices here have increased from £146,322 in August 2012 to £332,070 in August 2022, causing a 126.95% increase.