Looking to invest in property but don’t want to break the bank?

You can still become a landlord without having to fork out a fortune, and some areas offer incredible returns on your investment.

We’re talking about rental yields, which is the amount of income you earn from renting out a property compared to the price you paid for it.

The National Picture

According to the experts at Inventory Base, the average UK rental yield is 4.3%. That means, on average, if you buy a house for £333,030, you can expect to earn around £1,206 per month in rent.

But some postcodes offer far higher yields, especially if you’re looking to invest a smaller amount.

Top 5 Hotspots for Big Returns

Here are the top 5 postcodes where you can get the most bang for your buck:

• Bradford BD1: This postcode takes the crown, with a whopping average rental yield of 13.1%! You can pick up a property for around £63,988 and earn an average of £697 per month in rent. That’s the highest yield across all UK postcodes, regardless of investment price.
• Leeds LS3: Coming in close behind with a 12% yield, this area offers a great chance to get a decent rental income.
• Sunderland SR1: With an 11% yield, Sunderland is another city with impressive rental potential.
• Aberdeen AB24: Aberdeen’s AB24 postcode gives investors a 9.2% yield.
• Middlesbrough TS3: This area offers a solid 8.6% yield.

The Secret to Success?

It’s important to remember that regardless of where you invest, being a landlord comes with responsibilities.

Steve Rad, CEO of Inventory Base, says: “While you can build a strong portfolio with smaller investments, it’s essential to maintain high standards. Cutting corners will only cost you money in the long run. Make sure you manage your properties professionally, secure deposits correctly, and always carry out thorough inspections and inventory checks.”

Don’t Miss Out!

So there you have it – these are the postcodes where you can make your £100,000 go further and start building a profitable property portfolio.

Just remember to do your research, choose wisely, and be a responsible landlord. Happy investing!