London locations flop in league table of good buy to let returns

An analysis of buy to let returns from mortgage lender Mojo has produced a league table with no London locations in the top 20 postcodes.

Using information from HM Land Registry, Zoopla, OnTheMarket and property data portal PropertyData, the lender says that the north of England dominates the league table.

In Liverpool landlords enjoy yields of up to 10 per cent, closely followed by Bradford, Sunderland and Middlesbrough; even postcodes towards the lower end of the top 20 such as those in Aberdeen and Glasgow are returning yields of seven per cent.

Stubbornly purchases prices in London means generally low yields throughout the capital.

The postcode of W1 in central London generates the worst yield at 1.4%, with the average asking price of a property around £2.3m, whilst average asking rent is at £2,807 per month.

Mojo says the best of the ‘worst’ is in Hampstead Heath, N6; the average price is £865,000 and average asking rent is £1,614, making the buy-to-let yield 2.2 per cent.

The top 20 are:

Liverpool L7 (10.1% yield);
Bradford BD1 (10.0%);
Sunderland SR1 (9.4%);
Middlesbrough TS1 (8.8%);
Leeds LS4 (8.6%);
Liverpool L6 (8.4%);
Liverpool L1 (8.1%);
Newcastle-Upon-Tyne NE6 (7.8%);
Pontypridd CF37 (7.7%);
Manchester M14 (7.6%);
Edinburgh EH8 (7.6%);
Glasgow G31 (7.5%);
Liverpool L15 (7.4%);
Liverpool L2 (7.4%);
Sheffield S1 (7.2%);
Glasgow G32 (7.2%);
Birkenhead CH41 (7.1%);
Aberdeen AB11 (7.1%);
Glasgow G4 (7.0%);
Aberdeen AB24 (7.0%).

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