BUY-TO-LET yields are proving fruitful in Portsmouth, as new research finds it is the only southern city in the top 10 for best rental returns.
The city’s buy-to-let yields are on average at 5.75 per cent – the third highest in the country and more than the national 3.56 per cent average.
Figures from peer-to-peer property lending platform, Kuflink’s Buy-to-Let Index examined the average house price and median rent in 50 major towns and cities across the UK.
It found cities in the north greatly outperform London with properties in Manchester and Salford providing average rental yields of 6.7 per cent and 6.6 per cent.
The historic city of Cambridge – a popular commuter hotspot – provided the lowest average rental yield, just 2.7 per cent.
Tarlochan Garcha, CEO at Kuflink, said: ‘The rift between north and south continues, but this time the attention is turning north.
‘Buy-to-let properties in the north can be a steady investment, attracting renters who cannot afford to step on to the property ladder and therefore choose to rent in good locations, which are well-suited to their lifestyle. It could be time for landlords to turn their attention away from pricey London and look to the UK’s regional cities.’