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 policedata.co.uk 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 Propertydata.co.uk Live as at 3/2/20
| Postcode | Region | Average yield | Average price | Average £/sqft | 3yr +/- | |
| 1 | BD1 | North West | 9.10% | £61,000 | £123 | 8% |
| 2 | CF37 | Wales | 8.30% | £132,000 | £121 | 10% |
| 3 | SR1 | North East | 8.10% | £70,000 | £86 | 11% |
| 4 | LL57 | Wales | 7.90% | £156,000 | £161 | 9% |
| 5 | TS1 | North East | 7.80% | £60,000 | £63 | 2% |
| 6 | M14 | North West | 7.70% | £191,000 | £192 | 6% |
| 7 | LS4 | North East | 7.30% | £178,000 | £189 | 11% |
| 8 | SO17 | South East | 7.30% | £230,000 | £258 | 8% |
| 9 | NR5 | East of England | 7.30% | £224,000 | £233 | 11% |
| 10 | NE6 | North East | 7.20% | £131,000 | £154 | 12% |
| 11 | L1 | North West | 6.90% | £122,000 | £198 | 14% |
| 12 | NG7 | East Midlands | 6.70% | £181,000 | £192 | 12% |
| 13 | NE2 | North East | 6.60% | £197,000 | £227 | 8% |
| 14 | S1 | East Midlands | 6.60% | £118,000 | £210 | 11% |
| 15 | NG1 | East Midlands | 6.50% | £168,000 | £226 | 13% |
| 16 | NE1 | North East | 6.40% | £160,000 | £224 | 10% |
| 17 | PR1 | North West | 6.40% | £130,000 | £141 | 7% |
| 18 | DD1 | Scotland | 6.40% | £158,000 | 12% | |
| 19 | CF24 | Wales | 6.30% | £199,000 | £159 | 9% |
| 20 | PO4 | South East | 6.30% | £248,000 | £271 | 10% |
| 21 | PO5 | South East | 6.30% | £229,000 | £270 | 12% |
| 22 | S3 | East Midlands | 6.30% | £119,000 | £178 | 11% |
| 23 | SA1 | Wales | 6.20% | £140,000 | £132 | 6% |
| 24 | SO14 | South East | 6.20% | £208,000 | £284 | 7% |
| 25 | L20 | North West | 6.20% | £94,000 | £94 | 14% |
| 26 | L3 | North West | 6.20% | £141,000 | £173 | 14% |
| 27 | TS3 | North East | 6.20% | £85,000 | £93 | 4% |
| 28 | BH9 | South West | 6.20% | £329,000 | £307 | 7% |
| 29 | AB11 | Scotland | 6.20% | £101,000 | £162 | -4% |
| 30 | L15 | North West | 6.10% | £175,000 | £137 | 17% |
