A recent analysis conducted by Inventory Base has pinpointed five postcode districts where buy-to-let landlords can secure the highest rental yields with an initial property investment of under £100,000.
Inventory Base’s data reveals that while the national average rental yield in the UK sits at 4.3%—based on an average house price of £333,030 and a monthly rental income of £1,206—certain areas offer significantly higher returns for a fraction of the cost. The standout performer is Bradford’s BD1 postcode.
BD1 in Bradford Leads with a 13.1% Yield
In Bradford’s BD1 postcode, the average property price is an affordable £63,988, with an average monthly rent of £697. This combination results in an outstanding rental yield of 13.1%, making it the highest-yielding postcode in the UK for landlords, regardless of the initial investment amount.
Steve Rad, CEO of Inventory Base, commented, “Buy-to-let landlords don’t need to invest huge amounts of money to benefit from a strong rate of return. In some areas, you can invest in three properties for the price of the average UK home and build an instant portfolio with very strong yields.”
Sunderland’s SR1 and Other High-Yield Postcodes
For those with a slightly higher budget, Leeds’ LS3 postcode offers a robust 12% yield, although the average house price here is £184,178. However, for investors sticking to the under £100,000 range, Sunderland’s SR1 postcode presents an attractive alternative with an 11% yield, based on an average property price of £66,769 and a monthly rent of £611.
Aberdeen’s AB24 postcode and Middlesbrough’s TS3 also make the list, offering yields of 9.2% and 8.6% respectively, with average property prices under £100,000. The HU2 postcode in Kingston-upon-Hull rounds out the top five with an 8.3% yield.
Importance of Professional Management
Rad further emphasised the importance of professional management, noting, “It’s essential to remember that regardless of how much you invest, or where, your responsibilities as a landlord remain the same. Cutting corners operationally in order to maximise returns is a sure-fire way to lose money in the long run.”
