Best rental yields in the UK: From North to South
The UK remains one of the most reliable countries for buy to let success. A stable economy, international cities and strong job markets continue to draw people from across the world. For new investors or those preparing to take their first steps, understanding where the best rental yields in the UK can be found in 2026 is essential. Property investment can feel demanding, but with the right strategy it remains one of the safest ways to grow your capital and create dependable income.
Alongside strong rental returns, 2026 is shaping up to be a calmer and more balanced year for the wider housing market. Buyers have greater choice, sellers are approaching pricing with more realism and agents have a clearer environment in which to guide both sides. This combination of stability and steady demand is creating favourable conditions for investors who want to make strategic decisions with confidence.
If you’re new to property investment or interested in taking the big leap, it’s best to find out what you’re in for. It can be time-consuming and stressful, however, property investment is still one of the safest things you can do with your savings.
If done correctly, you can maximise your revenue with little risk. Start your first few steps now and learn about what are the best cities to invest in the best rental yields in the UK.
1. Where is the best place to invest in property in the UK?
The UK property market is well positioned for buyers in 2026. Analysts expect house prices to rise by 3% in 2025, followed by 3.5% in 2026 and 2.5% in 2027. Mortgage rates are also predicted to drop, encouraging more movement across the country.
More affordable regions continue to outperform the national average and are particularly appealing to investors seeking strong returns. The North East, Yorkshire and The Humber, Scotland, Wales and the North West remain standout choices. The Midlands also offer promising long term value. London, while slower in near term growth, continues to deliver stability and international appeal.
The Forshaw Group’s 2025 research suggests the average rental yield across England and Wales is 5.6%. Anything above 6% is considered good in 2026, with yields of 7% or more seen as excellent.
Below are the strongest buy to let locations for 2026.
Buy-to-let East Ayrshire
Rental yield: 9.50%
Average price: £130,000
East Ayrshire continues to deliver some of the highest rental yields in the UK. With an average price of only £130,000 and excellent transport links to Glasgow, the region offers outstanding value. Strong tenant demand and low entry costs make it one of the best performing buy to let areas in 2026.
Buy-to-let Middlesbrough & Sunderland
Rental yield: 7.92% and 8.96%
Average price: £144,000 and £150,000
Middlesbrough and Sunderland both offer excellent returns due to their affordability and strong local rental markets. Sunderland, in particular, stands out with yields approaching 9 per cent, making it one of the UK’s top performers.
Buy-to-let Burnley
Rental yield: 8.00%
Average price: £118,000
Burnley remains one of the best locations for high yields thanks to its extremely low property prices and accessible location close to Manchester and Leeds. With an average yield of 8 per cent, it is one of the clearest value opportunities in the UK.
Buy-to-let Liverpool
Rental yield: 7.44%
Average price: £189,000
Liverpool continues to benefit from regeneration projects and exceptional rental demand. Yields reach above 7 per cent in central areas, with some pockets reaching up to 10 per cent close to the Royal Liverpool University Hospital.
Buy-to-let Southampton
Rental yield: 6.34%
Average price: £249,000
Southampton is one of the strongest buy to let markets along the south coast. With high annual tourist numbers and steady student demand, the city offers strong, reliable returns.
Buy-to-let Hull
Rental yield: 7.30%
Average price: £162,529
Hull’s affordability and large student population make it a resilient rental market. Yields remain comfortably above 7 per cent, appealing to investors seeking value without compromising on demand.
Buy-to-let Nottingham
Rental yield: 6.64%
Average price: £200,000
With two major universities and a fast-growing population, Nottingham has consistent rental demand. Its relatively low average price and strong student market position it as an ideal location for stable long term occupancy.
Buy-to-let Stoke-on-Trent
Rental yield: 6.63%
Average price: £148,000
Stoke offers excellent value with lower purchase prices and reliable rental demand. Its strong transport connections and large workforce make it a steady performer for 2026.
2. What is a good rental yield in the UK?
Yields fluctuate across the UK and even in the same city or region, depending on the postcode. Location, surrounding amenities, and prestige will determine rental prices and play a huge role in your revenue.
The average rental yield in the United Kingdom was 5.6% in 2025. Therefore, a “good” rental yield is above 6%, though if you’re looking for excellent returns, you should look for yields of 7% or higher.
Though we’ve scoured the entirety of the British Isles to put this guide together, we should point out that London is a completely different kettle of fish. Anything over 5% in England’s capital should be considered an excellent yield, read our guide to investing in London for more information.
3. Why invest in property in the UK?
Buying real estate in the UK is a good investment because of the disparity between offer and demand. House prices are still affordable for buyers, but the demand for renting seems to continuously increase at a fast pace. This is noticeable mainly in cities with development and renovation, and have a high quality of living with good employment rates.
In comparison to other European countries, investing in property is much easier for foreign citizens, thanks to the benefits of a much more liberal economic policy. You won’t need British citizenship or a permanent residence permit. There are no real limitations of ownership rights for overseas investors. In fact, they share the exact same rights and obligations as the British.
As for returns, a strong well, and established economy, with the UK securing its position as Europe’s business-leading destination, it sustains a very stable investment background.
4. What is the UK’s tax on rental income?
The tax you pay from renting your property may fluctuate depending on how much you are profiting as well as on your own individual circumstances. It may be a case where you don’t make enough revenue to pay your taxes or you pay tax at a rate of 20%, 40%, or 45% on your rental income.
To calculate your rental income, you must subtract any allowable expenses from your total income. That said, do not forget to deduct costs of loan interests, mortgage, insurances, maintenance (not including improving works), utility bills, and professional services.
5. Short, mid or long-term?
Short-term rental is the perfect option for property owners in cities with all-year high tourism rates, higher rental rates, and flexibility.
Long-term rentals are a good solution for residential areas, renting big three and four-room houses for families, and smaller apartments for single tenants.
Is your property located close to a university? Students can guarantee you a minimum of 12 months of rent, and they may even increase their stay for the whole duration of the graduation or even further.
It is fundamental that your returns cover all your expenses, so you can make the most of your profits. Bearing that in mind, you must choose the renting modality that better fits your purposes.
6. Invest in the UK with GuestReady
If you are considering a buy to let investment in the best rental yields in the UK, GuestReady can guide you through every step. From estimating returns to managing short and mid term rentals, our team ensures your property reaches its full potential. With expert communication, listing optimisation and complete operational support, your investment can work smoothly from day one.
