Jan

Two of city’s postcodes offer best returns in UK says report

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A leading property investment firm has named the top-performing postcodes and regions of the UK.

Track Capital, which is based in London but works with property investor clients all over the UK, has crunched the numbers for 1,350 postcode districts across the nation and says Nottingham currently offers the best return on investment for buy-to-let landlords.

Its December data snapshot shows that two postcodes within the Midlands city offered just over 11% gross yield – NG7 and NG1 – followed by the BD1 postcode in Bradford (10.6%), M14 in Manchester (10.10%), NE6 in Newcastle upon Tyne (9.8%), YO10 in York (9.8%), SA1 in Swansea (9.2%), CF37 in Cardiff (9.2%), SO17 in Southampton (9.2%) and YO31 also in York (9.10%).

This hotspot Top Ten compares favourably with the average gross yield per property in the UK, which currently stands at 3.63%, says Track Capital.

Looking through the list, the message from the data is clear – cities where rents are relatively high but prices still low are where the gross yields are to be found – so often areas where young professionals and students want to live.

“Student-dense cities such as Manchester, Leeds and Nottingham feature highly and are responsible for much of the high yields in those cities,” says Nick Hyland, founder of Track Capital (pictured).

“London can still achieve above-average yields, especially a little further out in the commuter belt, such as 5.2% in Dartford but it also has the lowest-performing areas in the country.”

But the research also suggests where not to invest. The worst places for yield in the UK are GU10 in Guildford (1.9%), HP9 in Hemel Hempstead (2%), IG4 in Ilford (2%), WD7 in Watford (2.1%), CM4 in Chelmsford (2.2%), B93 in Brum (2.2%), AL4 in St Albans (2.2%), KT13 in Kingston (2.3%), W1 in central London (2.3%) and also SL9 in Slough (2.4%).

Read more about Nottingham landlords.

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