The answer, surprisingly, is Southampton where property investors have enjoyed yields of 8.7% in the past year, according to research carried out by the bank HSBC.
The best places for the fastest growing yields for buy to let properties are in Reading, where average yield of 5.48%, and Brighton, where yields are now 6.17%.
Best places for buy to let yields
In London, the best yields for a buy to let property are found in Newham, Southwark and Brent.
One of the reasons that Reading and Brighton have increased so much is that they are increasingly attractive to young professionals who are deciding to rent outside of the capital in more affordable commuter towns.
The HSBC's head of mortgages, Peter Dockar, said: “Even with the increase in commuter costs, many believe the move is worthwhile to save for a deposit on a property.
“While the house prices in these locations are out of reach for many first-time buyers, they are relatively affordable for landlords wanting to invest in property. The demand from young professionals is pushing up rents and driving up returns.”
Best buy to let investment locations
Southampton has enjoyed strong yields thanks to relatively inexpensive house prices and strong demand for rental property, particularly from seasonal workers and holidaymakers. The rental market is also boosted with students going to the city's university.
After Southampton, the top five locations in the UK for best rental yields are Manchester, Nottingham, Blackpool and Hull.
Manchester has leapt from fourth place last year into the second spot and Nottingham has risen from fifth to third because they enjoy relatively low house prices but also strong demand from large student and professional populations needing rental properties.
Landlords in London are faced with high property prices which puts returns under pressure and the bank's research highlights that the best returns are from less high profile and less popular areas where property prices are cheaper and high demand helps to keep rents more stable.
Best London places for buy to let investment
The figures reveal that buy to let yields in Newham are 6%, with Southwark on 5.55% and Brent on 5.27%.
Property investors looking for good returns on buy to let property should also, according to the HSBC, take a closer look at Hammersmith, Fulham, Redbridge and Camden.
Meanwhile, mortgage lenders and brokers are increasingly confident about the mortgage market and the prospects for the buy to let sector.
The Halifax reveals that 95% of mortgage brokers and positive about the mortgage market itself and see the increasing numbers of lenders willing to enter the market with attractive products was helping.
In addition, mortgage lenders are increasingly looking out for fraudulent buy to let mortgage applications from those who would not qualify for a residential mortgage under the new Mortgage Market Review rules.
