Nottingham, Bradford, Manchester, and Newcastle Upon Tyne are home to the postcode districts offering the best buy-to-let yields.

This was the conclusion of property investment advisory company TrackCapital after analysing rental yield and property price data from 1,350 postcode areas.

‘The north of England remains strong for delivering consistent high yields, balancing property prices, rising rents and steady demand’, said the company.

TrackCapital puts the current average rental yield across the UK at 3.6 per cent. ‘However, savvy investors know that much greater returns can be had in certain locations’.

With Nottingham taking the top two postcode district spots, and cities like Manchester and Newcastle not far behind, ‘it seems that cities with prominent student populations have the potential to return high yields, the M14 postcode of Manchester, for example, is an area with a high population density of students attending its main universities’.

The company suggests investors search for high rental yields might head north. ‘Above 7 per cent yields are possible in the northern cities of Manchester, Liverpool, Leeds and Newcastle’.

TrackCapital’s worst district postcodes by yield were in Guildford, Hemel Hempstead, Ilford, Watford and Chelmsford.

London investment properties will naturally show lower yields, said the company. ‘However, there are still opportunities present in the Greater London area, where prices are slightly lower than the city centre driven by demand from commuters.

‘The best yields are to be found a little further out in the areas of Dartford and Romford, places still within commuting distance to the city’.