Where the numbers actually make sense this year.
If you're a landlord looking to grow your portfolio, or you're thinking about launching your own lettings business this year, one thing matters: where the return actually stacks up.
Not where people used to invest. Not where the headlines say are “up and coming.” We’re talking about where the yields are strongest right now, in 2025, and where landlords are actually getting results.
So, let’s get straight to it.
1. Blaenau Gwent (Wales)
Yield: 11.4%
Let’s not pretend this is a city most investors talk about, but that’s exactly why it’s topping the yield charts.
Low property prices and solid tenant demand from working renters mean landlords are still seeing double-digit returns here. If you’re open to operating in Wales and have your compliance in order, it’s worth exploring.
Particularly good for: Starting small, low-cost entry, and landlords who want strong ROI without big city hassle.
2. Burnley (North West England)
Yield: 10.4%
Yes, Burnley. Cheap stock, consistent tenant demand, and a growing number of investors spotting the opportunity. You’re looking at strong yields from standard family lets and room rentals.
And unlike other towns in the North West, Burnley hasn’t been overexposed yet.
Particularly good for: Bread-and-butter lets. Quick wins. Low setup, fast results.
3. County Durham (North East)
Yield: 10.2%
County Durham’s got staying power. It’s not glamorous, but if you want reliable income, low voids, and decent-sized housing stock, this is a good place to operate.
It’s ideal if you want to build up multiple units over time.
Particularly good for: Growing a portfolio, especially if you’re thinking about scaling.
4. Plymouth (PL4 postcode)
Yield: 10.2%
You might not expect the South West to pop up here, but PL4 is performing. Why? University demand, NHS staff, and lower-than-average property prices in this part of town.
HMOs and co-living setups are doing well, especially for investors with a management structure in place.
Particularly good for: HMO strategies or anyone who’s ready to go a bit more hands-on.
5. Gloucester (GL1 postcode)
Yield: 9.6%
Another underrated win. GL1 in Gloucester has seen a spike in demand from public sector tenants and students, meaning high occupancy, minimal fuss, and above-average returns.
The best part? Properties are affordable to buy, and yields have held up even with rising costs.
Particularly good for: Passive landlords looking for stable tenants and repeat income.
6. Hull (HU5 postcode)
Yield: 9.3%
Hull’s not new to these lists — but HU5 in particular is delivering. Lots of our own partners are active here, and we even funded the acquisition of 250 units last year.
Family lets, student rentals, and contractor HMOs all stack here. You just need your systems in place.
Particularly good for: Those looking to scale fast.
7. Cardiff (CF24 postcode)
Yield: 8.9%
CF24 covers Cathays and Roath, both buzzing student and young professional areas. You’ve got three unis feeding demand, strong employment, and consistent long-term tenants if you want them.
Yes, you’ll need to be licensed and on top of your compliance, but the income justifies it.
Particularly good for: landlords with student lettings experience or strong management systems.
Final Thought: This Is Where the Industry’s Moving.
The South is slowing. Regulation is tightening. Yields are dropping in London and the commuter belt. But up North, and in targeted postcodes across Wales and the South West, the numbers still work.
These places aren’t just “good on paper.” They’re where real landlords and letting businesses are thriving in 2025.
The key? Know your strategy, scale where it makes sense, and make sure you’ve got the backing to do it right.
Maximise the potential of your property today.
Author
Chris Kirkwood
