The top UK postcodes
"Property investors looking for high yields on rental developments could see the best returns from northern cities or Scotland"
According to research across more than 2,600 postcodes within the UK, Sheffield City centre (11.06pc) offers buy-to-let investors the best return on investment.
On the other hand, London (3.4 pc) has the lowest buy-to-let return on investment of all areas in the UK due to its high house prices.
Gross yields, which average 4.17pc nationwide, are calculated by dividing the median annual rent by the median asking price.
It may be a surprise for some that Scotland largely dominates the top 10 with 5 demographics.
The cities in the North of England then follow with the 1st, 3rd, 4th, and 6th positions respectively.
The only southern city which currently offers investors the best gross returns is North Southampton (8.62 pc).
Financial lenders have now launched a flurry of cheaper buy-to-let mortgages thanks to market expectations that the interest rate will not rise anytime soon.
In addition, rents have risen to an all-time high of £761 according to the LSL Property Services, ultimately increasing the gross yields in many buy-to-let markets.
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