Top UK regions for buy-to-let investments and high rental yields—cities to towns for maximum property returns

The UK buy-to-let market offers varying opportunities depending on location, rental demand, and property prices. Northern cities, particularly in the North West and North East of England, consistently rank as top areas for high rental yields. Cities like Liverpool, Manchester, and Newcastle are popular due to their relatively low property prices, strong tenant demand, and thriving rental markets. Liverpool, for example, often delivers rental yields of 7-8%, driven by affordable housing and a growing student population. Manchester, a hub for young professionals and students, also offers yields around 6-7%, supported by its robust economy and ongoing regeneration projects.

In the Midlands, there are the likes of Nottingham and Birmingham as appealing buy-to-let hubs. The UK’s second-largest city, Birmingham, is seeing a boost from big infrastructure investments such as HS2 and with a rising population and rental yields averaging 5-6%. Nottingham’s large student population and relatively low property prices also help it achieve solid yields of roughly 6%.

There are opportunities in Scotland, in cities such as Glasgow and Edinburgh. Glasgow’s lower property values and high rental demand frequently take most of it, 6-7%. Edinburgh, however, is pricier, but long-term tenants are drawn by a strong economy and cultural value, yielding around 5 percent.

However, in London and the South East where rental demand is high, yields are much lower (3-4%) due to high property prices. But these areas might attract investors with an eye on long-term capital growth rather than quick cash flow.

Ultimately, “best buy-to-let areas will differ based on the goals you have. For rental yield, northern cities and university towns tend to be best but for those who value capital appreciation, London and the South East are a better match. Also, research local markets, tenant demand, and potential for growth to ensure a successful investment.