Yield league table revealed for large-scale regeneration areas

Striving for higher yields remains the holy grail for buy to let, and new research suggests investors could be attracted by large infrastructure projects.

Buy to let management platform Howsy has analysed 34 areas currently seeing significant infrastructure work.

Top of the league table comes Dundee Waterfront, where properties average £146,000 to buy and produce a typical rent of £881 per month – thus making a 7.2 per cent yield. Expected to bring 7,000 further jobs, it’s thought to be one of Western Europe’s most extensive waterfront projects and one of the biggest urban developments in Scotland.

Liverpool Ten Streets comes second, with homes typically costing£123,480 and producing average monthly rent of £657 – a 6.4 per cent return.

Other infrastructure projects with residential yields of between five and six per cent include Destination Bootle, Tribeca Belfast, Wirral Waters, Manchester Mayfield, Purfleet-on-Thames, South Shields 365, and Salford Crescent.

Of the 34 projects analysed the vast and controversial Earls Court development in central London comes bottom, with a yield of just 2.4 per cent and a typical property cost of £1.129m.

“There are a whole host of areas currently undergoing extensive regeneration projects which will increase rental demand in the short-term due to the construction itself, but also in the long-term, as these new developments bring more job opportunities and a greater appeal for living in general” explains Howsy chief executive Calum Brannan.

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