As the UK property market continues to evolve, investors are always on the lookout for the areas offering the highest rental yields. As we step into 2024, it’s clear that certain regions are outshining others, making them hotspots for buy-to-let investments this year.
The Northern Powerhouses
The North West has consistently shown impressive rental yields, and 2024 is no exception.
With cities like Sunderland offering gross rental yields of up to 8.5%, and areas in Bradford hitting yields of 10.7%, it’s evident that the North is a lucrative field for property investors.
Leeds also stands out, with central postcodes boasting rental yields of 10% due to its student population.
Scotlands Return
Scotland remains a strong contender, with cities like Glasgow and Dundee offering yields as high as 8.07% and 7.9% respectively.
The Scottish property market benefits from a robust tenant demand coupled with more affordable property prices, particularly in university cities that promise a consistent stream of student tenants.
Wales – The Dark Horse
Wales, particularly Cardiff, has emerged as a surprise entrant, offering some of the best rental yields in the UK, averaging at 7.6%.
The presence of prominent educational institutions and an increasing demand for rentals in city centres makes Wales a region to watch.
The Midlands’ Market
The Midlands, especially areas like Derby, are seeing a rise in rental prices with city-center properties achieving average yields of 6.07%. The local economy’s growth, combined with a housing supply that struggles to meet demand, sets a positive forecast for rental yields in this region.
The Midlands, especially areas like Derby, are seeing a rise in rental prices with city-center properties achieving average yields of 6.07%. The local economy’s growth, combined with a housing supply that struggles to meet demand, sets a positive forecast for rental yields in this region.
Is it still worth investing in property in London?
Despite London’s overall lower average yields, certain postcodes like SE28 in Greenwich offer yields of 6.10%. It’s crucial for investors to focus on these localised pockets within London where rental demand remains high.
Understanding the market
The UK rental market is experiencing a phase where rents are predicted to rise four times faster than house prices by the end of 2026. This trend is especially pronounced in regions with high demand and limited housing supply, such as city centres and areas with large student populations.
What is your property investment strategy for 2024?
With the economic landscape looking favorable and the UK property market forecast predicting sustainable rental growth, 2024 is shaping up to be a year of opportunity for property investors. Focusing on areas with high student populations, city-centre developments, and regions with predicted economic growth will be key.
Are you ready to capitalise on the UK’s high rental yields?
Connect with our investment experts today to explore the most promising properties and secure your next investment in 2024’s top locations for rental yields.
