The key to a successful long term buy-to-let is securing a solid rental yield for income returns, coupled ideally with the potential for capital growth from increasing property prices over time.

Aspen Woolf, a London based Property Investment Group, has identified in its latest survey the best buy-to-let ‘hot spots’ in the UK which include Manchester, Cardiff, Leeds and Liverpool.

In 2016, Cardiff was ranked second in the whole of the UK, with an average yield of 7.28%, just behind top positioned Manchester at 7.94%.

The UK property market remained stable in 2016, despite a turbulent year, with confidence remaining in the buy-to-let sector.

Rental growth increased but at a slower rate than 2015; this was to be expected, notably due to the unexpected Brexit result stalling market movement for a short period.

In 2017, The Royal Institution of Chartered Surveyors (RICS) predicts house prices will increase on average by 3% in the UK, and rents to increase by 2% to 3%. Rents in Wales may well increase marginally more, due to the additional costs Landlords have to bear under the new Rent Smart Wales legislation.

Top 10 Best UK buy-to-let yields ‘hotspots’

Ranking Post Code Area Average Value Buy-to-Let
1st M Manchester £177,686 7.94%
2nd CF Cardiff £187,337 7.28%
3rd LS Leeds £225,551 7.16%
4th L Liverpool £164,590 7.02%
5th WS Walsall £195,383 6.84%
6th NE Newcastle upon Tyne £184,224 6.03%
7th S Sheffield £194,673 5.92%
8th G Glasgow £182,716 5.71%
9th B Birmingham £189,898 5.42%
10th SR Sunderland £134,891 5.30%

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