A recent report ranked areas of the U.K by yield for buy-to-let investors. It is a common belief that the regions with the highest yield percentage are “buy-to-let heavens” where landlords are guaranteed to get maximum profits from their properties.
But does the yield tell you everything you need to know about the properties in the region?
If you take a wider look at the regions with the highest yields you will find some interesting results.
Many of the regions which possessed the best yield percentages were also low income areas. As a result, these are regions where the average rent would take up as much as up to 75% of the median salaries in the region.
So if you are looking to buy a new property in a region that claims to have a high yield surely you should ask yourself what good is it having properties in regions where nobody can afford to rent?
Have a look at the 10 best yielding regions below and you’ll see how hard it may be to find a tenant were you to invest.