If you are thinking of getting a buy-to-let mortgage, one of your main considerations should be location. Here you'll learn which places are currently the best areas for property investment in the UK, and how to begin your buy-to-let mortgage application.
Where are the best areas to get a buy-to-let mortgage?
The main consideration when trying to establish the best locations to purchase a rental investment property is the rental yields typical for the area.
The gross rental yield is a property’s annual rental income expressed as a percentage of its purchase price - (Annual rent ÷ Property price) × 100 - so you will want to look at areas where they are highest.
At the time of writing (January 2026), the North East remains high in the best rental yields list, with Sunderland topping the list in 2025. However, Wales now offers the best overall return on rental investment for prospective landlords in the UK. The North East of England stands firm as producing the second highest, and the North West, the third highest rental yields in the UK.
A healthy rental yield is anywhere between 6% and 8%, and all of those named above in the top 3 regions meet this criteria, with average yields ranging from 7.8% in the North West to 8.83% in Wales.
Top 10 cities for rental yields
Looking beyond regional hot spots, this table focusses on the 10 cities with the highest average rental yields across the whole UK, highlighting some of the best UK buy-to-let investment opportunities this year:
Top 10 UK Cities for Rental Yield (2025/2026)
| Rank | City | Avg. Rental Yield (%) | Avg. Property Price (£) | Avg. Monthly Rent (£) |
| 1 | Sunderland | 9.3% | £84,900 | £659 |
| 2 | Aberdeen | 8.3% | £106,200 | £734 |
| 3 | Burnley | 8.2% | £92,500 | £634 |
| 4 | Dundee | 8.1% | £119,600 | £809 |
| 5 | Middlesbrough | 8.1% | £98,700 | £665 |
| 6 | Hull | 8.0% | £99,800 | £669 |
| 7 | Blackburn | 7.9% | £114,500 | £756 |
| 8 | Glasgow | 7.8% | £154,900 | £1,012 |
| 9 | Grimsby | 7.7% | £104,800 | £675 |
| 10 | Liverpool | 7.7% | £136,000 | £870 |
Although the list in the table consists predominantly of cities in the North of England and Scotland, in certain areas of Wales, there are yields of 10% and over available. Rhondda Cynon Taf and Merthyr Tydfil both offer average rental yields above the 10% mark, as shown in the map below, but propery prices in Wales are slightly higher than the areas highlighted in the North of England and Scotland.
However, Wales have handled the abolition of Section 21 in a more proactive way than the transitioning English market, for example, by adding a 'bedded-in' system throug the Renting Homes Wales Act. This could make Welsh locations a safer regulatory bet for some 2026 investors.
UK Rental Yield Hotspots Map
The image above is a heatmap that shows where the best rental yields in the UK can be found. Towns and cities in yellow have a yield of below 6, those in orange are between 6% and 8%, and red indicates a yield of above 8%.
Fastest growing buy-to-let areas in the UK
In addition to knowing where the best rental yields are, it is also worth noting which areas have the fastest-growing buy-to-let markets, and why, as it may be possible to snag a bargain in a location that expects future market growth. This can be particularly fruitful if it's an area of ongoing development and improvement, such as Manchester and Leeds.
Fastest-Growing Buy-to-Let Markets (2026 Forecast)
| City/Area | Projected Rental Growth (2026) | Projected Price Growth (2026) | Primary Growth Driver |
| Carlisle | 8.1% | 4.0% | Affordability headroom & local employment |
| Manchester | 3.5% | 6.2% | Tech sector expansion & "The Bee Network" |
| Motherwell | 7.0% | 4.8% | Commuter demand for Glasgow/Edinburgh |
| Chester | 7.4% | 3.1% | High professional demand & limited supply |
| Wigan | 4.2% | 5.5% | Greater Manchester regeneration spillover |
| Liverpool | 3.2% | 5.1% | Waterfront & Baltic Triangle redevelopment |
| Luton | 3.8% | 3.5% | London commuter shift & Airport expansion |
| Cardiff | 2.5% | 3.2% | Welsh capital status & student retention |
Compare buy-to-let mortgage rates
Now that you’ve done some research into locations for your buy-to-let investment, you can explore your mortgage options on Money Helpdesk. Below you can compare the latest rates available from buy-to-let lenders across the UK for free and book a consulation with a broker who specialises in this type of finance.
Compare Rates
Showing Top Result Results
No results matching your criteria
Lender Details
Product Details
Buy-to-let hotspots based on property type
Of course some landlords also prefer to operate in specific propery types, depending on their preference and experience. The below table outlines the most popular and highest-performing areas for specific property types, as well as defined-use property such as houses of multiple occupation (HMOs), Multi-Unit Freehold Blocks (MUFBs), and holiday lets.
The table below outlines the most popular and highest-performing areas for specific property types, based on the latest 2026 market data.
Popular Buy-to-Let Areas & Yields by Property Type (2026)
| Property Type | Most Popular/Highest Yield Areas | Average Rental Yield (Location Specific) |
| Houses (Terraced) | Sunderland, Burnley, Middlesbrough | 8.1% – 9.3% |
| Flats | Liverpool (L1, L3), Barking (London), Manchester | 7.2% – 8.5% |
| Maisonettes | Luton, Slough, Darlington | 6.1% – 7.5% |
| Bungalows | Coastal Wales, East Riding of Yorkshire, Cornwall | 5.1% – 5.8% |
| HMOs | Liverpool (Wavertree), Manchester (M14), Leeds | 9.5% – 12.5% |
| Holiday Lets | Brixham (Devon), Castleton (Peaks), Lake District | 10% – 15%+ |
| MUFBs | Renfrewshire, Manchester (Salford), Liverpool | 7.5% – 9.2% |
Find a better buy-to-let mortgage on Money Helpdesk
How will the Rental Reform Bill Impact rental yields across the country?
The Renters' Right Act, which comes into play in May 1, 2026, is likely to cause substantial regulatory friction, so it's important not to overlook the impact the implementation could have on the suitability of property supply in certain areas, as well as the future rental yield potential.
For example, many of the high-yield areas mentioned as currrently providing the highest rental yields, such as Sunderland, Burnley and Middlesbrough have typically older housing stock that often falls below an EPC rating of C. The cost of retrofitting insulation or heat pumps to meet 2026/2027 standards can easily eat away at a high yield potential.
The below table predicts the impact each element of the legislation could have on future rental yield stability:
Impact of Renters’ Rights Act on Rental Yields
| Act Provision | Primary Yield Impact | 2026 Market Outcome |
| Abolition of Section 21 | Increases Possession Risk | Landlords must use Section 8; legal costs and court delays (often 6+ months) can wipe out a full year’s profit if a tenant defaults. |
| Annual Rent Review Limit | Caps Income Growth | Landlords can only increase rent once per year via the Section 13 process. Above-market hikes can be challenged at a tribunal, preventing "rent-gouging" but slowing yield recovery. |
| Decent Homes Standard | Reduces Net Yield | Older, high-yield stock (e.g., terraced houses in Burnley/Hull) requires "retrofitting" to meet new safety and energy standards, requiring significant upfront capital. |
| Ban on Rental Bidding | Stabilises Gross Yield | It is now illegal to accept offers above the advertised price. This prevents "yield spikes" caused by desperate tenants outbidding each other. |
| Periodic-Only Tenancies | Increases "Void" Volatility | The end of fixed-term contracts means tenants are no longer "locked in" for 12 months, making annual income less predictable for mortgage stress-testing. |
| Pet Requests & Ombudsman | Increases Admin Costs | Landlords must register with the PRS Database and pay a yearly fee. Refusing pets now requires a "proven reasonable excuse," increasing management time. |
Why choose Money Helpdesk for your buy-to-let mortgage?
Once you have decided on a location for your buy-to-let property, get expert advice and a rates comparison from a buy-to-let mortgage broker on Money Helpdesk.
Here are just some of the reasons why landlords choose us:
- We can compare the latest rates for you in seconds
- Our brokers can secure exclusive buy-to-let deals
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to take advantage of a free, no-obligation chat with broker who specialises in buy-to-let mortgages? Get started here.
FAQs
Rental yields show the amount of profit made from a buy-to-let property with the mortgage payments and running costs factored in, expressed as a percentage.
The gross rental yield offsets the cost of the property itself against the rental income, while the net rental yield takes all costs into account, including maintenance and repairs.
It is essential to take rental yields into account when planning a buy-to-let investment because you will need to know that the rental income is not only profitable, but high enough to cover unexpected costs, such as emergency plumbing repairs.