"Another coastal town in the North West takes second place"
The research reveals the best areas 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.
Beside the seaside
Taking into account both the average property value and the average rent paid, the best place to make a property investment in 2023 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.
Industrial power
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.
However, 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.
