Yields of more than 10% are still obtainable in certain university towns in the England, according to the Telegraph. Given all the tax changes implemented and coming, investors are looking for higher yields to try and counteract any tax increases as much as possible. For those with existing properties that potentially means increasing rents (or more expensively paying down mortgages). For those looking to buy there are more options as you are not restricted to a specific property.
Sunderland hits the sweet spot
Looking at this research, top of the list in terms of yield is Sunderland. This is due to a mix of low house prices and moderate rents producing 10.6% yields on average. As you would expect the top of the list is dominated more so by properties in the North. The other two towns are Middlesbrough and Birmingham. As a comparison, Sunderland actually offers double the yield of Southampton due to a much higher house price average.
Interestingly a similar initiative was taken be LendInvest where Sunderland also came top of the list but Liverpool and Manchester came 2nd and 3rd. Their heat map gives a good overview of the market across England.
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