In 2025, affordability and rental yield are topping the priority list for savvy buy-to-let investors. With higher interest rates and tighter lending criteria, many landlords are rethinking location and looking outside London’s prime postcodes to find the best return on investment (ROI). Fortunately, several UK towns are emerging as hotbeds of opportunity, offering low property prices, strong tenant demand, and healthy rental yields.
If you’re considering entering the rental market or expanding your portfolio, here are some of the UK’s most promising affordable towns where buy-to-let investors are already seeing fast returns.
Birmingham (Central areas)
Why it stands out:
Birmingham continues to top the charts for investor interest—and with good reason. Property prices in certain central districts remain below the national average, yet the city benefits from regeneration projects, a booming student population, and young professionals seeking modern rentals.
According to recent data, average rental yields in Birmingham hover around 6–7%, and with HS2 infrastructure in progress, capital appreciation is firmly on the horizon.
Hull
Why it stands out:
With house prices averaging under £150,000 and yields reported upwards of 8%, Hull is a firm favourite among value-driven landlords. A mix of students, young families, and working tenants keeps demand consistent—especially for well-presented two- and three-bed homes.
Sunderland
Why it stands out:
This North East city often flies under the radar, but it’s a goldmine for investors. Low property prices paired with resilient rental demand—particularly around the University of Sunderland and NHS Trust sites—make it a great spot for entry-level landlords. Many achieve gross yields of 7% or more.
Stoke-on-Trent
Why it stands out:
Stoke is benefiting from a quiet property boom. Thanks to extensive regeneration, a growing logistics sector, and improving infrastructure, the city is drawing attention for its low entry price and steady tenant base. Investors report fast rental take-up and yields above 6%.
Doncaster
Why it stands out:
A popular choice in South Yorkshire, Doncaster offers strong yields and rising tenant demand. With HS2 no longer on the cards, prices remain affordable, giving investors a great window to enter the market. The rental market is buoyed by working professionals and young families priced out of nearby cities.
Tips for spotting high-yield investment towns
- Check tenant demographics: Areas with universities, hospitals, and industrial zones typically ensure consistent demand.
- Prioritise transport links: Proximity to major roads or rail lines boosts tenant interest and resale value.
- Look beyond the headline price: Calculate gross and net yields, factoring in management fees, maintenance, and void periods.
- Use a local expert: Working with a reputable agent can uncover off-market deals and provide insight into rental trends.
Partner with property experts like Belvoir
Whether you’re a seasoned investor or a first-time landlord, working with local professionals gives you the edge. Belvoir offers nationwide coverage with local insight—making them a trusted partner for buy-to-let investors across the UK.
From portfolio advice to tenant sourcing and property management, Belvoir’s team—including the knowledgeable Estate Agents in Birmingham Central—can help you make smart decisions with confidence.
Final thought:
In today’s climate, fast returns don’t require a big-city postcode. With the right research and the right partner, affordable towns across the UK could deliver big rewards for buy-to-let investors. Now might be the perfect time to broaden your search and unlock new rental potential.
Contact one of our highly experienced mortgage advisors today on 0121 500 6316 to discuss your mortgage needs.
