The North East of England is the place to be if you want to invest in properties under £100,000 that offer strong yields.
Of the top five affordable regions with strong yields in England and Wales, four are in the North East, analysis from mortgage lender Molo shows.
In first place is Hartlepool and nearby Stockton-on-Tees, with a typical house just price shy of £86,000. The region offers sky-high gross yields of 7.90%, with an average monthly rental income of £591.
Other lucrative areas in the North East include South Teesside, which has an average house price of £96,500 and a rental yield of 7.66%. Low property prices combined with the average of £646 per month in rental income means high yields and affordable opportunities for investors. After that comes Darlington (£85,370.33/6.83%) and Durham (£94,055.28/6.67%).
One region in the North West also offers very strong returns in the form of Lancaster and Wyre, with average house prices of £93,000 and a gross rental yield of 7.11%.
Mark Michaelides, vice president of strategy at Molo, said: “While the rental yield plays a central role in your returns, it is determined primarily by location.
“Landlords looking for additional ways to maximise rental income may consider home improvements, such as a new bathroom, kitchen or an extension, which can increase both the rental potential and overall value.
“Making your buy-to-let more energy efficient is another way to boost rental income, as it may make the property more desirable to tenants due to lower energy bills.”
