High yield buy-to-let investment in 5 South East towns

It is a common belief that buy-to-let yields are higher in Northern England, but here are 5 high yield places in the South East where yield potentials are as much as 5.5% and even higher. We’ve identified 5 towns where there is a high demand for rental properties and property prices a generally lower than the rest of the region, making them an attractive buy-to-let asset location.

Here are those town’s conservative yield estimates:

Town 1 Bed 2 Bed 3 Bed 4+ Bed
Slough 5.5% 5.3% 5.1% 4.9%
Bracknell 5.4% 5.2% 5.0% 4.8%
Oxford 5.0% 4.8% 4.6% 4.4%
Luton 4.9% 4.7% 4.5% 4.3%
Swindon 4.8% 4.6% 4.4% 4.2%

What size properties offer the highest yields?

As you can see, 1 bedroom properties across our pick of towns offer investors the highest yields in May 2023. However we have found that they are snapped up quick, especially in Bracknell and Swindon. You may want to check out local estate agents on a daily basis before searching property aggregators like Rightmove and Zoopla. It certainly does pay to get in first when a good example comes available.

Can you really expect a yield of more than 5% in the South East?

We decided to put our claim to the test at the time of writing (May 2023). We used the 30th percentile of current rents asked on Rightmove as our base calculation figure for rental income and the same 30th percentile of asking prices for properties.

Slough

Our 30th percentile rent is 950pcm. So the expected rental income would be 11,500pa. There were a number of rental-ready properties available for around the 170,000 price point, making a yield of 5.5% a very real expectation.

Swindon

Our 30th percentile rent is 670pcm. So we used a rounded figure of 8,000 rental income per annum. There were 8 one bedroom properties available ranging from 90,000 to 100,000 making a yield of 4.8% a possible under estimate by around 2%. You can see why one bedroom properties are going fast!

it is important to note that your yield may vary from year to year. This is because the rental income and the cost of expenses can change. However, if you have done your research and you are investing in the right property, you can definitely expect to earn a good return on your investment in Bracknell, Swindon, Slough and Oxford. Don’t take our word for it though. Always consult an independent financial advisor, yes really.



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