But where comes out top?
Lettings management platform, Howsy, has revealed that on a regional level, the North East is the most profitable market at 4.8%, with Yorkshire and the Humber, the North West and London also home to an average yield of 4% or more.
Scotland accounts for 14 of the top 20 areas with the highest average yields, with Glasgow (7.4%), Inverclyde (7%) and Midlothian (6.9%) amongst the best. Belfast is the only area of Northern Ireland to rank in the top 20 with yields currently averaging 6.1%.
Burnley (6%), Hyndburn (5.8%), Blackpool (5.7%), Newcastle (5.6%) and County Durham (5.5%) complete the top 20 as the best buy-to-let areas in England at present.
At the other end of the table, Powys, Monmouthshire and Kensington and Chelsea all rank with the lowest average rental yields in the UK, currently at just 2.7%.
Calum Brannan, Founder and CEO of Howsy, commented: “An already tough buy-to-let sector has been complicated further by the ongoing threat of Covid, as some tenants continue to struggle financially and demand in city centres dwindles due to a growing culture of working from home.
"The ongoing saga of the eviction ban and where and how it applies may also deter investment in the short term as many landlords continue to see little to no rental income and are largely unable to reclaim their investments.
"The silver lining is there are still a wealth of areas where demand remains high, as well as plenty of pockets where yields continue to sit way above average. For those thinking of investing in the buy-to-let sector this year, finding the right balance between the two is the best bet at maximising the profit seen on your investment.”
