The current average UK rental yield has dropped slightly from 3.6% to 3.5%, according to the latest data from Howsy.
Despite the existing coronavirus crisis, there are still a number of buy-to-let pockets providing strong returns for landlords who want to invest in property.
Bradford is home to the highest average yield at 10%, while Gwynedd and North Down offer an average yield of 6.2% and 6% respectively.
Glasgow, Liverpool, Preston, West Dunbartonshire, North Lanarkshire, Forest Heath and Manchester also rank high.
At the other end of the scale Kensington and Chelsea, Malvern Hills and Chiltern are home to the UK’s worst average yields at 2.3%.
Despite the problems posed by the current pandemic, predictions of house prices falling while rental demand remains high could mean an increase in yields, as the investment cost to return ratio becomes more favourable.
Calum Brannan, founder and CEO of Howsy, said: “The current lockdown has seen the government introduce measures such as buy-to-let mortgage holidays and a ban on tenant evictions and this has understandably caused many buy-to-let investors to hesitate. But despite this overall air of market uncertainty, tenants still need to find rental properties and so it continues to be business as usual for many landlords and those agents who have adapted to a more digital mode of operations.
“There’s also still a large number of areas where potential and existing landlords can secure favourable yields much higher than the national average, with some areas still seeing an uplift in yields despite the spread of the Coronavirus.
“As the nationwide lockdown continues to drag on, there may be another silver lining for buy-to-let investors. Should the property market see prices fall, the cost of investing will be lower, boosting profit margins in a sector that has had it tough of late due to Government squeezes on profitability.”
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