A property investment firm has drawn up a league table of cities with significant rental yields.
Sequre Property Investment analysed the average rental yield across 21 major cities in England and Wales over the last five years and found that in those locations, rental yields have averaged 5.1 per cent per year since 2015.
The best performing has been Manchester, with rental yields sitting at an average of 5.5 per cent a year.
Sunderland has also performed well at an average of 5.4 per cent per year, with Nottingham and Newcastle close behind.
Sequre sales director Daniel Jackson says: “The increasing cost of property coupled with current uncertainty within the rental market can make investing into the rental market a daunting business. However, it remains a lucrative venture for those who know where to invest and what to invest in."
He continues: “The key is to know your market and to appreciate that property investment should be undertaken with a long term view, rather than a smash and grab mentality. The historic market health of a given location can provide you with good insight in this respect but top-line rental yields can only take you so far.
“Utilising the knowledge of those in the sector is the best way to maximise your endeavours, whether it be through a tailored investment to suit your individual circumstances, the ability to access bulk deals that can minimise the initial cost of investing or even access to off-market opportunities that aren’t open to the average buy to let investor. All of these approaches can see you secure a far higher yield in any location when compared to the general market.