UK Markets open in 5 hrs 52 mins

The best and worst buy-to-let property spots

Lana Clements
Image: John Giles/PA

Buy-to-let investors looking for the best return on their money should buy a property in Bootle, according to research that puts the area at the most profitable in Britain.

The Merseyside town will make a top annual 8.3% rental yield, based on a two-bedroom property  being picked up for approximately £65,000 and rent at a typical £451 a month. 

It’s followed by Plumstead, which will give a yield of 7.9%. At £185,000 asking prices for a two bedroom property in this pocket of south east London are nearly triple that of Bootle, but local rent keeps pace at £1,213.

Dundee and East Kilbridge also give a tasty return of 7.4%, according to the research carried out by property listing site Home.co.uk.

On the other hand, upmarket parts of London, including Kensington, Knightsbridge, Chelsea, Mayfair & Belgravia, are not such a wise investment with yields of between 2.4% and 3.3%.

"Investors in the rental property market really need to research their chosen location carefully in order to maximise potential yields," commented Doug Shephard, director at property listings site Home.co.uk.

The top 10 buy-to-let areas by annual rental yield:















Location
No. 2-Bed Properties for Sale
Typical Asking Price(£)
No. 2-Bed Properties for Rent
Typical Rent (£ pcm) % Rental Yield (gross per annum)
Bootle

285

65000

238

451

8.3

Plumstead

163

185000

105

1213

7.9

Dundee

325

85000

233

524

7.4

East Kilbride

237

70000

106

429

7.4

Plaistow

192

192500

227

1148

7.2

Hamilton

296

80000

165

477

7.2

Camberwell

113

235000

141

1400

7.1

Brentford

108

327500

441

1950

7.1

Newham

144

180000

133

1049

7.0

Dagenham

171

163000

161

949

7.0

[Source: Home.co.uk]