One of the most important aspects for landlords is to invest in property that offers the best buy to let returns to make their investment a lucrative one.
Now the average rental yield for 50 cities and towns in the UK have been analysed by Kuflink, a peer-to-peer lender, and they found that landlords in Manchester and Salford are leading the way.
From their figures, properties in Manchester have an average rental yield of 6.7%, while those in Salford have a 6.6% rental yield.
For the last quarter of 2016, the areas that enjoyed the largest increases for average rental yield were for properties in Hull, Luton and Rotherham.
Kuflink says that the best yields are for properties in the North despite London properties achieving higher rents.
Properties in popular northern towns and cities cost significantly less
That's because properties in popular northern towns and cities cost significantly less than they do in the south which helps deliver higher returns.
The lowest average rental yield being seen by landlords are for those with properties in Cambridge, which despite being a popular student city and commuter hotspot, delivers just 2.7%.
Kuflink's chief executive, Tarlochan Garcha, said: “The rift between South and North continues but the attention is turning. Buy to let properties can be a steady investment in the North and attract renters who cannot afford to get onto the property ladder so choose to rent in good locations which suit their lifestyles.
“Leeds and Manchester are bustling cities that are popular with families and young professionals and offer landlords solid returns. Birmingham is also on the buy to let map as a strong spot with a growing business district and the benefit from HS2.”
‘Time for landlords to turn away from London’
He added: “It could be time for landlords to turn away from London and look towards the UK's regions.”
Figures have also been revealed that show where the rents for residential properties are rising the quickest and more than 20 areas have seen growth exceeding 3% over the past year.
According to the Landbay rental index, the fastest-growing rents are for landlords in Luton who saw rises of 6.5%, followed by properties in Northamptonshire where rents grew by 5.1% and then Peterborough which saw rises of 4.8% and Edinburgh with increases of 4.6%.
Among the other areas that enjoyed high rental price rises were for landlords in Bedfordshire, up by 4.6%, Medway, up by 4.5%, Thurrock up by 4.4% and Bristol where rents grew by 3.6%.
However, the firm's figures also reveal that rents in the UK overall remained unchanged with an average rent of £1,189 being charged in January.
The average rent for a new tenancy in London is £1,883 every month on average; that's a year-on-year fall of 0.4%.