Research reveals best average buy to let yields by property type

18 June 2020 | Renting

Research reveals best average buy to let yields by property type

One bedroom properties provide the best returns to buy to let investors according to new research by a lettings management platform.

Single bedders provide a rental yield of 6.2 per cent on average while two beds typically provide 5.6 per cent and three-bedders have an average yield of 5.0 per cent.

The averages mask significant local variations according to this research by Howsy.  

When it comes to investing in a one-bed buy to let, Newcastle is the best bet, with the average yield coming in at 7.9 per cent, closely followed by Glasgow on 7.7 per cent. Liverpool and Plymouth are also 7.0 per cent or higher. 

For two beds Newcastle, Glasgow, Belfast and Sheffield are all over 6.0 per cent yields.

“Tenants’ demand is growing for one and two-bed homes that provide them with a space of their own. This growing demand is leading to one and two-bed properties climbing the ranks of profitability due to their lower investment price point and higher demand pushing up rental prices” according to Howsy founder Calum Brannan.

“As the threat of the Coronavirus reduces, we will no doubt see this trend reverse as people begin to again feel comfortable about shared living and the better social lifestyle this brings.”  

This post has originally been featured in Letting Agent Today.