A recent analysis by Molo, a mortgage lender, has highlighted the North East as a standout area for investment potential. This region is home to four of the top five most affordable regions in England and Wales, each offering strong rental yields.

Hartlepool and Stockton-on-Tees

Leading the pack are Hartlepool and nearby Stockton-on-Tees. Here, you can find properties averaging just below £86,000, a figure that is music to the ears of budget-conscious investors. What’s more enticing is the gross yield of 7.90%, paired with an average monthly rental income of £591, making it an investment opportunity hard to ignore.

South Teesside

Not far behind is South Teesside, where the average house price stands at £96,500. The rental yield here is impressive at 7.66%, and when you consider the average rental income of £646 per month, it’s clear that high yields and affordability are not mutually exclusive.

Other Areas

But the list doesn’t end there. Darlington and Durham also make their mark with their respective average house prices of £85,370.33 and £94,055.28, and yields of 6.83% and 6.67%. These areas further cement the North East’s reputation as an investor’s paradise.

The North West’s Shining Star – Lancaster and Wyre

It’s not just the North East that’s turning heads. The North West holds its own with Lancaster and Wyre, where you can find average house prices of about £93,000 and an impressive gross rental yield of 7.11%.

Expert Insights

Mark Michaelides, vice president of strategy at Molo, emphasizes the critical role of location in determining rental yields. For landlords seeking to boost their income, he suggests considering home improvements like new bathrooms, kitchens, or extensions, which can enhance both rental potential and property value. Additionally, making a property more energy efficient can attract tenants due to lower energy bills, further increasing its desirability.