Other strong areas in terms of yields are Cardiff (6.0%), Southampton (5.9%) and Greater Manchester (5.9%).
Nottingham is now rivalling Liverpool as a UK buy-to-let hotspot, as they both offer yields of 6.2%, analysis from mortgage broker Private Finance has found.
Other strong areas in terms of yields are Cardiff (6.0%), Southampton (5.9%) and Greater Manchester (5.9%).
When working out which were the hotspots Private Finance took into account average house prices, average mortgage costs and average rents.
Shaun Church, director of Private Finance, said: “Finding the right buy-to-let location is a careful balancing act.
“Too large an initial investment makes it difficult to achieve a healthy yield, but landlords must also be confident that property values will appreciate at a higher rate than mortgage borrowing to achieve a long-term profit.
“Strong rental demand is also key to prevent lengthy void periods that can damage affordability.
“While there has been some movement in the top 10 buy-to-let hotspots, larger cities and university towns tend to offer the greatest opportunity for investors as they offer the highest rental demand.”
