The UK property investment landscape presents a striking contrast between regions, with rental yields ranging from an exceptional 11.2% in Sunderland’s SR1 to more modest returns in affluent areas like London’s W8 at 2.9%.
Looking ahead through 2025, for property investors choosing their locations and starting sourcing (and buying now), there is exceptionally strong buyer demand and tenant demand across the country. Northern England dominates the best high-yield locations, with Sunderland (SR1), Bradford (BD1), and Leeds (LS3) achieving yields above 8.5%, while offering entry prices as low as £63,081 in SR1 compared to Greater London’s average of over £500,000. These northern hotspots also show strong rental demand.
In this article we have analysed the latest property datasets to see which towns and cities across the UK perform the best across key metrics like rental yield, house price growth, price per square foot and population growth, to help identify the best buy-to-let properties and areas for new investors and established landlords growing their portfolio.
We have then shortlisted the highest performing top 3 postcodes with the strongest rental yields in each region to give you a clear idea on which areas are ones to watch.