The research by money.co.uk reveals the best areas for landlords to invest, based on average rental yields in each UK authority. Rental yields were calculated by analysing the average house price and rent prices in each UK authority over the last year.
Taking into account both the average property value and the average rent paid, the best place for landlords to make a property investment is Blackpool, on the Lancashire coast. The seaside resort has an average property price of just £140,108 but has a slightly higher average rent price than similarly affordable areas at £550, meaning rent prices are 0.393% of average house prices in the area.
Another coastal town in the North West takes second place, with rent being around 0.389% of house prices in Barrow-in-Furness. The average property price in Barrow is £141,360, with an average rental price of £550. The port town is close to the Lake District and is best known for its shipbuilding industry, home to the country’s biggest employing shipyard.
Completing the top three towns is Burnley, in Lancashire. Burnley has the lowest house prices in the whole country, at £121,409, although average rents are also slightly lower than the two towns above, at £450. The town has a strong manufacturing sector, as it has since the Industrial Revolution, and is located near both the Lancashire countryside and cities like Manchester.
Areas with the biggest ten-year house price growth (outside London)
The UK authority with the biggest ten-year house price growth is Thanet. Average house prices here have increased from £146,322 in August 2012 to £332,070 in August 2022, causing a 126.95% increase.
In second is Hastings, on the southeast coast, where average house prices have risen by just over double in ten years.
Best known as the site of the Battle of Hastings in 1066, today Hastings is an important fishing port.
It's undergone regeneration over the last 20 years, with improvements such as the opening of the University Centre Hastings, Sussex Coast College and the Priory Quarter business district.
Another area in Kent comes in third place, with house prices in Medway increasing by just over 104% in the last decade.
Medway is part of the Thames Gateway development scheme which has seen significant investment in the area and may have led to an increase in prices.
In 2006, the local council projected that £1 billion would be spent in total on the local area in the following 20 years.
