North-east of England and Scotland ‘offer top rental returns for landlords’

Middlesbrough, Sunderland and Glasgow are among the hotspots where landlords can find better rental returns, according to new analysis.

Property website Zoopla, which compared average rents across the UK for two-bedroom properties with how much they would typically cost for landlords to buy, found strong rental yields are clustered in the north-east of England and Scotland.

It found landlords in Middlesbrough, East Ayrshire, North Ayrshire and Inverclyde can typically generate rental yields of 7.7%.

In Glasgow and Stirling, typical yields were calculated at 7.6% and 7.5% respectively, while in Sunderland a yield of 7.4% can potentially be achieved.

Rental yields – the financial returns that landlords make on properties – are calculated by factoring in the annual rental income a landlord can achieve as well as how much they need to pay to buy a property.

Tom Parker, consumer spokesman at Zoopla, said relatively low house prices in parts of northern England and Scotland help to generate higher yields for investors.

He added:”Yields are of course one consideration for investors and, for those considering their first foray into the buy-to-let market, it is worth considering house price growth forecasts for an area, and whether rents are likely to rise over time.”

Zoopla released the research to mark the launch of new tips for buy-to-let investors on its website.

Here are the top 10 investor hotspots and the typical gross yield based on two-bedroom properties, according to Zoopla:

=1 Middlesbrough, 7.7%

=1 East Ayrshire, 7.7%

=1 North Ayrshire, 7.7%

=1 Inverclyde, 7.7%

5 Glasgow, 7.6%

6 Stirling, 7.5%

=7 Sunderland, 7.4%

=7 County Durham, 7.4%

=9 Nottingham, 7.3%

=9 Hartlepool, 7.3%