The LendInvest Buy-To-Let Index is published quarterly, and uses recent asking price sales and data to provide a snapshot of the UK property market, and then overlays the current rental prices to obtain an accurate yield for UK BTL property.
According to the report, 4 of the 10 highest rental yielding postcodes are to be found in Birmingham, followed close behind by 3 of the 10 in Glasgow with Ipswich and Liverpool also making it into the top 10.
The average rental yield for a 1 bed property across the UK is 5.9% compared to 5.3% for a 2 bed, 4.7% for a 3 bed and 4.0% for a 4 bed.
According to Price Paid data from Land Registry capital gains are 2.6% per year across the UK from the year 2010 to 2014.
Areas in Manchester and Liverpool have actually experienced declines in house prices year on year.
Postcodes WC1, WC2 and N5 in London have the highest returns on investment yielding up to 25% year on year.
The highest house price increase has been seen in Hackney over the period 1995-2014 experiencing up to an 8 fold increase, closely followed by Kensington and Chelsea (7 fold increase).
