Investing in buy-to-let properties in the UK has always been a popular strategy for both new and seasoned landlords. However, with property prices on the rise in major cities like London, many investors are now turning their attention to more affordable locations that still offer attractive rental yields. If you’re looking to make a smart move in 2025, understanding where high rental returns can be found without a hefty upfront investment is key.
Why focus on rental yield?
Rental yield is a crucial metric for property investors. It represents the annual rental income as a percentage of the property’s value. High rental yields generally indicate a strong return on investment, especially in areas with affordable purchase prices and steady tenant demand. While capital growth is important, yield ensures steady cash flow — something many landlords prioritise in today’s economic climate.
Top affordable UK locations offering strong rental yields
Let’s take a look at some of the UK’s most promising areas for high rental returns without breaking the bank.
1. Birmingham Central
Birmingham remains one of the most attractive cities for rental investments. The Birmingham Central area, in particular, offers excellent transport links, a thriving business hub, and an ever-growing student population. With new developments and regeneration projects underway, rental demand remains strong across city centre flats and shared accommodation.
Average yields in central areas of Birmingham hover between 6% to 7%, with many properties still priced more affordably compared to southern cities.
Looking to explore investment opportunities in the area? Speak to the experienced team at Belvoir, or connect with local experts at Estate Agents in Birmingham Central who can help you identify high-yielding opportunities.
2. Sunderland
Sunderland is consistently listed among the top UK cities for high rental yield. Properties in this northeast city are incredibly affordable, and the local rental market is supported by a steady demand from students and working professionals alike.
Yields can reach up to 8%, particularly in areas close to the university and city centre.
3. Hull
Kingston upon Hull, or simply Hull, has undergone significant transformation over the past decade. The city boasts low property prices and decent rental demand, making it an investor favourite.
Certain postcodes in Hull regularly deliver yields of 7% or more, thanks to its strong rental market and growing population of young renters.
4. Liverpool
Liverpool’s regeneration and reputation as a vibrant university city contribute to its strong rental market. While city centre properties have appreciated over the years, many suburban and outer-city areas still offer low property prices and impressive yields.
Yields here average 6.5%, with some buy-to-let hotspots exceeding 8%.
5. Nottingham
This Midlands city benefits from two major universities and a well-connected transport network. Nottingham’s property prices are still relatively accessible, and rental yields often range between 6% to 7%.
It’s a solid choice for investors looking for both long-term capital appreciation and short-term income.
How affordability links to long-term success
Investing in high-yield areas doesn’t always mean compromising on growth. In fact, many affordable cities are benefiting from regeneration funding, transport investment, and housing schemes that improve their long-term investment potential.
If you’re just getting started or expanding your portfolio, researching the cheapest houses in the UK can help uncover lesser-known areas with strong rental demand and minimal competition.
Partner with a trusted property expert
Whether you’re searching for your first investment property or looking to scale your buy-to-let portfolio, it’s crucial to work with professionals who know the local market inside out. At Belvoir, we provide tailored advice, up-to-date rental data, and end-to-end support — from property search to ongoing management.
With branches across the UK and a trusted name in lettings and sales, Belvoir is the go-to choice for investors seeking the right balance of affordability and yield.
Final thought:
The UK property market continues to evolve, but the fundamentals of successful buy-to-let investing remain the same — choose the right location, understand your numbers, and work with the right team. With cities like Birmingham Central and Sunderland offering both value and returns, 2025 could be the year your portfolio starts yielding real rewards.