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A new online tool is available that claims to reveal the best areas for buy to let property investment in the UK.
The ‘Buy to Let Hotspots’ online tool developed by windows furnishing firm Thomas Sanderson, helps to show where renting out a property can return the greatest yield.
The online tool shows the rental yield in 2,463 locations across the UK and claims to reveal the average annual income a property will generate if rented out, as a percentage of the property’s overall value.
Using online property listings to establish the average purchase price in an area, the online tool then divides the property price by the average monthly rent to figure out the rental yield.
Users of the new line tool can then check how their chosen buy to let investment area compares against others in the UK and work out the best, and worst, rental yields by postcode.
Liverpool currently comes out strongly for buy to let rental yields, with the L6 and L1 postcodes grabbing first and third place with respective yields of 14.99 and 13.62 per cent, separated only by Sunderland which the online tool ranks at a 13.66 per cent yield.
Marketing manager for Thomas Sanderson, Richard Petrie, said: ‘If you are considering buying a property to let it out, this tool is really useful in showing you where it would be most profitable to do so and give you an idea of what to expect in your chosen location.’
He continued: ‘It’s also interesting to see the vast difference in rental yield in different areas of the country, but not that surprising that three of the least profitable locations are in London.’
Best Postcodes for Buy to Let Rental Yield
- L6, Liverpool – 14.99 per cent
- SR1, Sunderland – 13.66 per cent
- L1, Liverpool – 13.62 per cent
- TS2, Middlesbrough – 13.6 per cent
- TS14, Guisborough – 13.19 per cent
Worst Postcodes for Buy to Let Rental Yield
- WC1A, London – 1.12 per cent
- TQ8, Salcombe – 1.16 per cent
- N18, London – 1.35 per cent
- W1J, London – 1.49 per cent
- NE18, Newcastle – 1.51 per cent