North West Buy-to-Let Investment Offers Significant Rental Yields

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Which North West Cities or Towns Offer the Best Rental Yields?

As a buy-to-let investor, rental yields should factor into your decision-making when buying a rental property.

Today, we’re looking at some of the top places in the North West for rental yields, as per Zoopla’s updated list of the highest-yielding areas in the UK.

Zoopla regularly updates its list, so it’s a good idea to check in occasionally to ensure your investment strategy focuses on the right areas.

But why the North West? According to a recent cross-sector study from Savills, the North West buy-to-let market is predicted to see returns of 9.2% in 2024. Savills also noted in a separate forecast that the North West would see a capital growth of 20.2% by 2028. As a result, more eyes are on the region in search of potentially profitable investment opportunities.

Which cities and towns are likely to achieve a significant rental yield? Let’s dive into it and learn more about what to invest in right now in the UK property market.

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Which Areas Can Offer Strong Rental Yields in the North West?

So, where are the best places for buy-to-let in the North West as far as gross yields are concerned?

Three North West towns or cities sit in the top ten rental yield rankings. This should come as no surprise to people who keep an eye on yield changes, as Burnley (8.00%), Blackburn (7.52%) and Liverpool (7.44%) all featured in the top ten during the previous update.

Further down the list, Blackpool, Preston, Birkenhead, Wigan, Manchester and Warrington appear thanks to their impressive rental yields.

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Should You Consider Other Things Apart from Rental Yields With These Locations?

Alongside rental yields, a recent study from The Mortgage Lender suggests that investors prioritise energy efficiency, long-term investment potential, and the location’s attractiveness just as much as the potential yield and price.

For that reason, investors may want to consider some of the bigger cities in the North West, such as Liverpool.

For instance, Liverpool has the fastest-growing economy out of any UK city, according to The Data City. In addition, the city boasts a strong graduate retention rate, which suggests a plethora of job opportunities for young professionals, enhancing the desirability of the location.

Plus, the rental yield (7.44%) is impressive, especially compared to the national average (5.60%). The yield has also grown by 0.1% since the last Zoopla update.

Finally, Liverpool’s property prices are more than affordable than the national average, particularly in other notable cities further south, such as London. The HM Land Registry UK House Price Index puts the average Liverpool property price at £176,371, while the average UK price stands at £281,913 (figures accurate as of January 2024). This is important to consider if you plan on buying more than one property.

Learn more About North West property investment with some of our handy area guides: