The best and worst buy-to-let property spots

Hoping to make a tidy return from buy-to-let? You’ll need to pick your spot carefully...

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]