Rental yield hotspots – live data 3/1/20

SR1 in my very own hometown of Sunderland in the North East of England is quoted as being in the top 3 performing postcodes for property yield. (Full table at the bottom of this post)  The general attraction for out-of-town investors is the cost of entry in the North East. In SR1 you can pick up a rental property form £35k, with the average being £70k.

But would I invest in SR1?

The short answer, HELL NO!

You can’t have your cake and eat it too!

There is a lot more going on in any area than simply the price paid and rental valuation. Theoretical yields are just that – Theoretical. 

Either because, the rent has gone unpaid or the property has been subject to damage. 

You can usually predict these areas using SR1 in particular has higher than average anti-social behaviour, public orders, violence and sexual offences, shoplifting, criminal damage and arson. 724 Crimes per 1000 residents in the last year.

It’s the type of place, where if you have a void period its highly likely you will need to replace the stolen boiler, copper pipe and lead on the roof. In fact, the property doesn’t need to be empty for this to happen.

One big headache!

Now this is not Sunderland in its entirety. It is definitely not all doom and gloom. I move my focus a few miles and there you have it. Steady, affordable (65kish) and reliable properties attracting good tenants.

Actual return on investment. No theory.

You can view the full list of yield hot spots here. Information taken from Live as at 3/2/20

 PostcodeRegionAverage yieldAverage priceAverage £/sqft3yr +/-
1BD1North West9.10%£61,000£123 8%
2CF37Wales8.30%£132,000£121 10%
3SR1North East8.10%£70,000£86 11%
4LL57Wales7.90%£156,000£161 9%
5TS1North East7.80%£60,000£63 2%
6M14North West7.70%£191,000£192 6%
7LS4North East7.30%£178,000£189 11%
8SO17South East7.30%£230,000£258 8%
9NR5East of England7.30%£224,000£233 11%
10NE6North East7.20%£131,000£154 12%
11L1North West6.90%£122,000£198 14%
12NG7East Midlands6.70%£181,000£192 12%
13NE2North East6.60%£197,000£227 8%
14S1East Midlands6.60%£118,000£210 11%
15NG1East Midlands6.50%£168,000£226 13%
16NE1North East6.40%£160,000£224 10%
17PR1North West6.40%£130,000£141 7%
18DD1Scotland6.40%£158,000 12%
19CF24Wales6.30%£199,000£159 9%
20PO4South East6.30%£248,000£271 10%
21PO5South East6.30%£229,000£270 12%
22S3East Midlands6.30%£119,000£178 11%
23SA1Wales6.20%£140,000£132 6%
24SO14South East6.20%£208,000£284 7%
25L20North West6.20%£94,000£94 14%
26L3North West6.20%£141,000£173 14%
27TS3North East6.20%£85,000£93 4%
28BH9South West6.20%£329,000£307 7%
29AB11Scotland6.20%£101,000£162 -4%
30L15North West6.10%£175,000£137 17%


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