Mojo Mortgages: Liverpool ‘s L7 postcode tops the BTL yield table

Jessica Bird

June 3, 2020

liverpool btl

The L7 postcode in Liverpool is top of the market in terms of buy-to-let (BTL) rental yields, generating 10.30%, with an average asking price of £95,000, according to analysis by Mojo Mortgages. 

Mojo Mortgages analysed data from the UK Land Registry, Zoopla, On The Market and PropertyData.co.uk.

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.

The average asking price of a property in Sunderland is £61,000

The North West is one of the top regions for strong buy-to-let yields.

As well as a number of profitable areas in Liverpool, the area of M14 in Manchester which covers Fallowfield has a yield of 7.60%.

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%.

Ealing only featured once in the London top 10 with Northolt generating an average yield of 5%.

The postcode of W1 in Central London generates the worst yield in the city, at 1.4%, with the average asking price of a property around £2.3m, while average asking rent is at £2,807 per month.

The average salary in London equates to £37k annually, and £2,300 monthly, making it unaffordable for many sole renters.

The best of the worst in London is in Hampstead Heath N6, where the average asking price is lower than in other areas of the worst 10, at £865,000, and average asking rent is £1,614, making the buy-to-let yield 2.2%.

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