Best rental yields in the UK: From North to South
Last updated: January 2025
Investing in property? Find out the best rental yields in the UK
The UK stands strong as one of the most reliable buy-to-let success locations. The industry is booming with its stable economy and cosmopolitan cities, thriving with action and work opportunities, drawing in people from all over the world.
If you’re new to property investment or interested in taking the big leap, it’s best to find out what you’re in for. It can be time-consuming and stressful, however, property investment is still one of the safest things you can do with your savings.
If done correctly, you can maximise your revenue with little risk. Start your first few steps now and learn about what are the best cities to invest in and the best place to invest in the UK. Let’s read more about the best rental yields in the UK.
1. Where is the best place to invest in property in the UK?
The UK property market is attractive to buyers in 2025, with analysts predicting that it will remain a buyer’s market throughout the year. House prices are expected to rise by 3% across the UK in 2025, followed by 3.5% in 2026 and 2.5% in 2027, with mortgage rates expected to drop.
Moreover, the total average rental yield for England and Wales rose by 0.6 percentage points in 2024, with promising returns set to continue throughout 2025.
The latest research from the Forshaw Group shows that the average rental yield for properties in the UK is 5.6%, but there’s much regional disparity. So, if you’re keen to invest in a buy-to-let property in 2025, here are the best areas to focus on for above-average returns:
Buy-to-let East Ayrshire
- Rental yield: 9.50%
- Average property price: £130,000
East Ayrshire is home to numerous towns and villages in western Scotland that were former mining communities. Kilmarnock, Darvel, and Hurlford are popular locations here, each has excellent access to Glasgow, less than an hour away via the M77. Glasgow-Prestwick Airport is also close by for continental connections.
Properties in East Ayrshire deliver some of the best rental yields in the United Kingdom in 2025, with an average of 9.50%. Also, given that the cost of buying property in East Ayrshire is just £130,000, according to the ONS, this is a great part of the country to lock in a buy-to-let investment.
Buy-to-let Middlesbrough & Sunderland
- Rental yield: 7.92% and 8.96%, respectively
- Average property price: £144,000 and £150,000, respectively
Located in North Yorkshire, Middlesborough is a working-class town with a population of more than 370,000. The town is 43 miles north of York and 19 miles from the popular historical centre of Durham.
Middlesbrough is a great destination for buy-to-let investors, with an average purchase price of £144,000 and an average rental yield of 7.92% in 2025.
Nearby Sunderland is also a great option if you’re looking for a buy-to-let property in the north-east of England. The average rental yield here is 8.96% in 2025, while current data from the ONS shows that the average property price in Sunderland sits at an affordable £150,000.
Buy-to-let Burnley
- Rental yield: 8.00%
- Average property price: £118,000
From the northeast of England to the northwest, Burnley is in Lancashire and is relatively close to big cities like Manchester, Leeds, and even Liverpool. Burnley is one of the cheapest places in the UK to buy property, with an average price of just £118,000 in 2025.
Coupled with an average rental yield of 8.00%, it’s easy to see why Burnley is a great buy-to-let option if you’re keen to invest in property in the northwest of England in 2025.
Buy-to-let Liverpool
- Rental yield: 7.44%
- Average property price £189,000
Property prices are estimated to rise by 28% over the next four years. This provision gives Liverpool the edge as a prospective rental hotspot. Central postcodes are delivering the best rental returns and yields on the properties close to the Royal Liverpool University Hospital, as they can even go up to 10%.
The city’s plans for renovation are a very ambitious project that will for sure boost its potential, leading to a very auspicious future for investors. The average property price is £189,000 and the average rental yield in Liverpool is currently at 7.44%, making it one of the highest-yielding cities in the UK.
Buy-to-let Southampton
- Rental yield: 6.34%
- Average property price: £249,000
Southampton is one of the top areas for a buy-to-let investment on England’s south coast, with an average rental yield in 2025 of well over 6%.
Moreover, while Southampton is more expensive to buy in than many other places on this list, the £249,000 average purchase price is low for the south coast, which attracts millions of visitors and holidaymakers annually.
Buy-to-let Hull
- Rental yield 7.30%
- Average property price: £162,529
Hull is situated at the mouth of the Humber River in northeast England. The city is close to the rolling green countryside of Yorkshire, and there are many quaint villages and countryside retreats close by.
What’s more, Hull has a vibrant student population and great nightlife, making this a fun city for young adults and young professionals. Hull is one of England’s cheapest areas to buy and live, with an average property price of £162,529. You can expect a rental yield of 7.30% in Hull.
Buy-to-let Nottingham
- Rental yield: 6.64%
- Average property price: £200,000
If your investment strategy points towards student accommodation, Nottingham is where you should put your money. Home to two major universities (Nottingham Trent University and the University of Nottingham) as well as one of the biggest teaching hospitals in the UK (Queens Medical Centre), the city shows a great need for student housing. In case you’re looking for long-term tenants, affordability has also been a key factor in Nottingham’s rising population, contributing to a growing demand for rentals.
Nottingham also boasts an attractive rental yield of 6.64% and an average purchase price of £200,000, one of the cheapest for major cities in the Midlands.
Buy-to-let Stoke on Trent
From the East Midlands to the West Midlands, Stoke on Trent is a town famous for its pottery industry. Situated just off the M6 halfway between Birmingham and Manchester, Stoke is a decent location with excellent transport links to some of the UK’s busiest cities.
The average rental yield you can expect in Stoke is very similar to Nottingham, but Stoke has the advantage of much lower property prices, coming in at more than £50,000 less than in Nottingham, on average, in 2025.
2. What is a good rental yield in the UK?
Yields fluctuate across the UK and even in the same city or region, depending on the postcode. Location, surrounding amenities, and prestige will determine rental prices and play a huge role in your revenue.
The average rental yield in the United Kingdom is 5.6% in 2025. Therefore, a “good” rental yield is above 6%, though if you’re looking for excellent returns, you should look for yields of 7% or higher.
Though we’ve scoured the entirety of the British Isles to put this guide together, we should point out that London is a completely different kettle of fish. Anything over 5% in England’s capital should be considered an excellent yield – read our guide to investing in London for more information.
3. Why invest in property in the UK?
Buying real estate in the UK is a good investment because of the disparity between offer and demand. House prices are still affordable for buyers, but the demand for renting seems to continuously increase at a fast pace. This is noticeable mainly in cities with development and renovation, and have a high quality of living with good employment rates.
In comparison to other European countries, investing in property is much easier for foreign citizens, thanks to the benefits of a much more liberal economic policy. You won’t need British citizenship or a permanent residence permit. There are no real limitations of ownership rights for overseas investors. In fact, they share the exact same rights and obligations as the British.
As for returns, a strong well, and established economy, with the UK securing its position as Europe’s business-leading destination, it sustains a very stable investment background.
4. What is the UK’s tax on rental income?
The tax you pay from renting your property may fluctuate depending on how much you are profiting as well as on your own individual circumstances. It may be a case where you don’t make enough revenue to pay your taxes or you pay tax at a rate of 20%, 40%, or 45% on your rental income.
To calculate your rental income, you must subtract any allowable expenses from your total income. That said, do not forget to deduct costs of loan interests, mortgage, insurances, maintenance (not including improving works), utility bills, and professional services.
5. Short, mid or long-term?
Short-term rental is the perfect option for property owners in cities with all-year high tourism rates, higher rental rates, and flexibility.
Long-term rentals are a good solution for residential areas, renting big three and four-room houses for families, and smaller apartments for single tenants.
Is your property located close to a university? Students can guarantee you a minimum of 12 months of rent, and they may even increase their stay for the whole duration of the graduation or even further.
It is fundamental that your returns cover all your expenses, so you can make the most of your profits. Bearing that in mind, you must choose the renting modality that better fits your purposes.
Best Rental Yields in the UK FAQs
What does rental yield mean?
In a nutshell, rental yield indicates how much you can reasonably expect a property to deliver in rent, expressed as a percentage of the property’s value. So, for instance, if you pay £120,000 for a property with an expected yield of 5%, you can expect an annual return in the region of £6,000.
Which area offers the best rental yields in the UK in 2025?
East Ayrshire in Scotland is one of the best buy-to-let investment options in the UK market in 2025, with an average yield of 9.50%, one of the highest in Great Britain. In England, Sunderland is perhaps the best option, with an average yield of 8.96%, while Burnley boasts an average annual rental yield of 8% in 2025.
What is the average rental yield in London?
In 2025, you can expect an average yield of 4-5% for rental properties in London. According to our latest research, Purfleet-on-Thames is one of the best areas for high yields in the capital, with RM19 offering an average yield of 7.3% in 2025.
6. Invest in the UK with GuestReady
Looking to buy investment property in the UK? Schedule a call with our experts in property investment and find out the estimated returns of your properties.
