The Best UK Rental Yield Hotspots in 2022 – 31/05/2022

Accounts Navigator

As house prices continue to rise, it is undeniable that the real estate market in the UK is a seller’s market. At the same time, in today’s unstable economic environment, real estate represents one of the safest and most profitable long-term investments.

So, if you have been looking to invest in a residential or commercial property, there has never been a better time to take the first step up the property ladder. And yet, as the competition gets fiercer by the minute, it is important to understand what areas in the UK have the potential to offer the highest returns to property owners and developers.

Looking to invest in a property to lend and generate passive income by being a landlord? Check out where to invest in the UK for high rental yields in this guide by Accounts Navigator.

Nottingham

In 2022, the average house price in Nottingham is around £227,000, which is over £110,000 cheaper than the national average. At the same time, house prices in Nottingham are growing at a much faster pace compared to England and Wales, seeing an increase of around 20% compared to 2019.

But if you are looking to invest in a buy-to-let, the chances are that you are not only looking at how cheap the house prices are – but also at how much you can make by renting it. The reason why Nottingham makes for the perfect place to buy is that rentals here also yield impressive returns.

Indeed, Nottingham is home to several important institutions, including:

The University of Nottingham
Nottingham Trent
Queen’s Medical Centre
Major companies’ HQs, including Experian and Boots

These institutions have created an influx of medical personnel, professionals, managers, executives, and students, all looking for places to rent or buy. All this, combined with the high-quality public transport lines make the city an ideal rental hotspot.

Bristol

The average house price in Bristol is £348,304, up 14% compared to 2019’s averages and much closer to the national average. However, Bristol features some characteristics that make the city one of the best buy-to-let markets in the UK.

Indeed, the city has reported a long-term property growth and house price increase. Additionally, the inventory of long-term property vacancies is at an all-time low, causing rental prices to hover around £1,429 – or 5-15% more compared to other same-size properties in other areas of the UK.

Even more importantly, Bristol is a vibrant city always in development. From hosting the University of Bristol to being the subject of a £300 million property regeneration project, the city offers exciting opportunities to most investors.

Manchester

The average house price in Manchester is £278,122, and the average rental price is £758.60 for a one-bedroom flat and £1,368 for a three-bedroom accommodation. Aside from the potential for high rental yield, it is also worth looking at the high demand for rental properties. Indeed, Manchester is one of the largest cities in the UK, is home to five universities, and is one of the fastest-growing economic centres in England.

That means that there are thousands of students and professionals looking for high-quality rental options for long-term stays.

Unsure about the best option for your investment goals? Get in touch with our team to learn about the other rental yield hotspots near you!

The world of Property is a difficult one to master, even more so in the current state of the world. Knowing what mistakes to avoid and what advice to follow can be challenging – so we have made it simple:

Our Director Andrea L Richards has written an E-Book on the most common mistakes made by the Property Sector and expert advice on how to avoid and overcome them.