A leading property investment firm has named the top-performing postcodes and regions of the UK.

Track Capital, which is based in London but works with property investor clients all over the UK, has crunched the numbers for 1,350 postcode districts across the nation and says Nottingham currently offers the best return on investment for buy-to-let landlords.

Its December data snapshot shows that two postcodes within the Midlands city offered just over 11% gross yield – NG7 and NG1 – followed by the BD1 postcode in Bradford (10.6%), M14 in Manchester (10.10%), NE6 in Newcastle upon Tyne (9.8%), YO10 in York (9.8%), SA1 in Swansea (9.2%), CF37 in Cardiff (9.2%), SO17 in Southampton (9.2%) and YO31 also in York (9.10%).

This hotspot Top Ten compares favourably with the average gross yield per property in the UK, which currently stands at 3.63%, says Track Capital.

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Looking through the list, the message from the data is clear – cities where rents are relatively high but prices still low are where the gross yields are to be found – so often areas where young professionals and students want to live.

“What we can see when looking at the postcodes with the best yields is they all tend to follow a similar pattern,” says Nick Hyland, founder of Track Capital (pictured).

“They have a high proportion of their demographic aged between 20-24 and are located in either city centre locations or close commuting distance which creates a recipe for a very strong rental market.

“We know the average age for first-time buyers in the UK is around 33 years old at the moment so demand is likely to remain strong in these areas.

“You can also see that these areas tend to be made up of more terraced properties and flats helping to attract potential renters as these property types suit this demographic.

“If we look at the worst-performing postcode, GU10, it has a higher age demographic of  45-49 and over 50% of the property stock is made up of detached houses with the average property asking price being over £500k more expensive than the best performing postcode. This stark contrast really highlights what to look for when searching for a high yielding property investment area.”

Other ‘worst places’ include HP9 in Hemel Hempstead (2%), IG4 in Ilford (2%), WD7 in Watford (2.1%), CM4 in Chelmsford (2.2%), B93 in Brum (2.2%), AL4 in St Albans (2.2%), KT13 in Kingston (2.3%), W1 in central London (2.3%) and also SL9 in Slough (2.4%).

Read more about Nottingham landlords.


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