London vs Manchester: where is the highest yield?

Where you can find the highest rental yield?

Purchasing a property is always a decision that comes risks, but there are ways to minimize those risks and ensure optimal results. Today, we are going to give you some important and essential numbers that can help you make an informed decision on how and where to invest in property.

Keep in mind that these numbers change, but they can provide a very accurate set of numbers for anyone looking to invest in 2019. It’s important to check for fluctuations, but the numbers tend to be stable for a while and you might see a small decrease or increase in high yielding areas, but they are often quite stable

The highest yield

London has an average top yield of 5.38% in the RM9 postcode and this is one of the highest yielding areas. Then you have postcodes like E6 at 5.36%, RM8 at 5.18% and RM3 at 5.1%. Those numbers fall quite short when you see that Manchester has an average yield of 7.92% in the BL8 postcode, 7.33% in M9 and 7.33% in M18. The difference is quite remarkable so in terms of high yields, there is no question that Manchester is a much better choice in terms of yield percentages.

The lowest yields

Some London areas have extremely low yields like SW1X at 1.85%, W1S at 1.75%, W1J at 1.57%, W1G at 1.54% and the lowest being E1W at 1.35%. Manchester has a balanced yield that rarely goes below 4% with the lowest being 4% flat in M20, M33 at 4.02%, followed by M21 at 4.26%. This also points to Manchester as a location with better options in general, with the yield being higher in most cases.

The rent median

London has a rent median of £1205 in RM9, £1505 in E6 and £1450 in RM8. Manchester shows a much lower rent costs with zip codes like M9 at £887, M8 at £855 and M14 at £922. The numbers are clear in terms of rental costs in both cities and there is no denying that Manchester is a more affordable option with rentals that go as low as £622 in M34.

The importance of being informed

There are some areas that can fluctuate quite often, but you tend to see certain cases when you can tell if their value is going to be decreasing steadily or increasing steadily. Learning to look at the patterns and tendencies in every area is going to give you a good idea of what the future holds for each location. Checking the stats on any areas that catch your attention is always important.

Final thoughts

Buying property is never an easy decision to make, but you have to leverage certain factors before you decide if London or Manchester would be a better option for your needs. Being able to make a good decision with plenty of information is always going to be useful and this is why we encourage investors to keep an eye on any fluctuations when they are about to buy.

Abricko offers the perfect way for you to find the best property investments with a deep learning machine that checks millions of data on a daily basis for this purpose.