Top 20 Buy to Let hotspots by yield

According to the international bank, HSBC’s research shows that Manchester gives the highest buy to let yield so far in 2015 at 7.93%.

This brings the Northern City up from second place in 2014, with the countries capital producing some of the lowest BTL yields ranging from 4% – 5%.

Bournemouth was in 12th place in 2014 and currently in 13th, with a 0.30% drop in year-on-year yield growth, with the return gross yield for 2015 being 6.21%. In comparison to the other 19 locations, it has one of the highest percentages of housing stock privately rented with 28.21%.

The table represents the comparison for the Top 20 BTL hotspots by yield. HSBC researched the 50 towns with the most private rental housing stock.

The percentage for year-on-year growth shows that Forest Heath in Suffolk is 38.70%. This represents a rise of £4,116 rental income from 2014. This has risen from the 22nd place to 4th with the year.

When choosing a location for a BTL investment, it is important to research not only large towns and cities, but areas with good commuter links and those with high rental demand.