The 7 Best Places to Buy Rental Property in 2026

The best places to buy rental property in the UK in 2026 for rental yield are mostly in the North of England and Scotland. Sunderland has the highest average gross yield at 9.3%, followed by Aberdeen at 8.3% and Burnley at 8.2%, according to Landlord Resource’s analysis of Zoopla data. London has the lowest regional yield, at 5.1%.

Here are seven places that stand out for buy-to-let investors in 2026, what makes each one work, and what to check before you buy.

Key takeaways

The highest yields are in lower-priced northern towns and cities, where rents are high compared with property prices.
Bigger cities like Manchester and Liverpool offer lower yields but stronger demand and capital growth.
Gross yield isn’t profit. Always work out the net yield and return on your cash.
The right deal matters more than the right postcode. A good area won’t fix a bad purchase price.

The 7 best places to buy rental property in 2026

Place	Average gross yield	Why investors like it
Sunderland	9.3%	Very low prices and the highest yield in the UK
Burnley	8.2%	Low entry prices and strong rental demand
Liverpool	7% to 8%	Strong rental and price growth, large student and professional market
Hull	Above 7%	Affordable prices, offshore wind jobs, student demand
Bradford	Around 7%	Low prices, young population, major regeneration
Nottingham	6.5% to 7.5%	Two large universities and steady demand
Manchester	Around 5.6% to 6.3%	Strong economy and long-term capital growth

Yields are gross averages. Individual properties vary widely.

1. Sunderland

Sunderland tops the UK for rental yield in 2026, with an average gross yield of 9.3%. The average property costs £84,924 and the average rent is £659 a month. Low prices mean a smaller deposit, and ongoing regeneration in the city centre supports demand.

Watch for: capital growth tends to be slower than in bigger cities, so Sunderland suits investors focused on income.

2. Burnley

Burnley has an average gross yield of 8.2%, with an average property price of £92,473 and average rent of £634 a month. It’s one of the most affordable places in England to start a portfolio.

Watch for: demand varies street by street. Check local rents and void periods carefully.

3. Liverpool

Liverpool combines yields of around 7% to 8% with strong growth. Average rents are around £869 a month, and prices have risen faster than the national average. Two universities, a growing professional market and regeneration projects such as Liverpool Waters keep demand high.

Watch for: some city-centre new-build flats have struggled. Terraced houses and HMOs in established areas tend to perform more reliably.

4. Hull

Hull offers yields above 7% and some of the lowest prices of any UK city. Jobs in offshore wind and a large student population support rental demand.

Watch for: slower price growth than in larger cities.

5. Bradford

Bradford’s average yield is around 7%, with some city-centre postcodes reported much higher. Low prices, a young and growing population and around £2 billion of regeneration make it popular with investors.

Watch for: yields vary a lot between areas, so analyse each deal on its own numbers.

6. Nottingham

Nottingham’s yields of around 6.5% to 7.5% are supported by two large universities and good graduate retention. It’s a strong city for student lets and HMOs.

Watch for: HMO licensing and Article 4 rules apply in parts of the city.

7. Manchester

Manchester’s yields are lower, at around 5.6% to 6.3%, but it has one of the strongest economies outside London. Average rents are around £1,312 a month, and prices have nearly doubled over ten years.

Watch for: higher prices mean a bigger deposit and lower yield. Manchester suits investors who want growth as well as income.

Also worth considering

Aberdeen: 8.3% average gross yield, though Scotland has its own rules on rent increases.
Middlesbrough, Dundee, Glasgow and Newcastle: all ranked in the top 10 for yield in 2026.
London: the lowest average yield, at 5.1%. It’s a capital growth market rather than an income one.

How to choose where to invest

Decide what you want: monthly income, capital growth or both.
Check local demand: who rents in the area, and how quickly properties let.
Work out the net yield: take off running costs, management and voids. Our guide to ROI, ROCE and yield shows how.
Check the rules: HMO licensing, Article 4 and selective licensing vary by council.
Buy at the right price: a below market value purchase improves the yield from day one.

Finding deals in high-yield areas

Many investors don’t live near the areas with the best yields. That’s where local deal sourcers come in. They find properties, check the numbers and introduce deals to investors for a fee. If you know your area well, you can build a business doing this yourself.

Frequently asked questions

Where is the best place to buy rental property in the UK?

For rental yield, Sunderland has the highest average gross yield in 2026, at 9.3%. For a balance of income and growth, Liverpool and Manchester are popular choices.

What is a good rental yield in the UK?

Many investors aim for a gross yield of 6% or more. Northern towns often reach 7% to 9%, while London averages around 5%.

Which UK region has the highest rental yields?

The North East and Scotland, both averaging around 7.9% gross yield in 2026.

Is buy to let still worth it in 2026?

It can be, especially in high-yield areas and when you buy at the right price. Rising rules and costs mean the numbers need to work after every cost, not just on gross rent.

Data: Landlord Resource analysis of Zoopla data, August 2026, and published market analysis from 2026. Yields are gross averages and vary by property.