The past couple of years have seen a concerted crackdown on the buy-to-let brigade.

However, a new survey suggests there are still plenty of places in the UK where you can still get a decent yield on a buy-to-let investment.

Financial site Totally Money looked at 500,000 properties across England, Scotland and Wales and found that while landlords in London may be struggling to make a decent return in Liverpool yields of almost 13% are still possible.

“Realising a decent return on buy-to-let rental property is becoming increasingly difficult. Prospective landlords need to go into property investment armed with the facts,” says Joe Gardiner, head of brand and communications at Totally Money.

“They need to be on top of their credit report, compare the market for the best buy-to-let mortgage rates and focus on property investment in areas that can give them the highest yield.”

[Read more: Property millionaire reveals his top tips]

Top 25 Buy-to-Let Property Hotspots

The research found that students are providing many of the buy-to-let hotspots around the country with university towns such as Newcastle, Manchester, Nottingham, Sheffield, Glasgow, Cardiff and Plymouth, as well as Liverpool, all offering the best returns with average annual yields, before costs, of over 7%.

Lower house prices outside of London and the South East, combined with student demand for rental accommodation mean that all these cities have housing stock that provides a decent investment yield for landlords.

 

Town

Postcode

Properties for Rent

Median Rental Value

Properties for Sale

Median Asking Price

Yield

1.

Liverpool

L7

177

£1,224

79

£116,259

12.63%

2.

Liverpool

L6

217

£959

133

£108,898

10.57%

3.

Liverpool

L15

227

£1,214

241

£141,566

10.29%

4.

Plymouth

PL4

334

1,315

271

£155,437

10.15%

5.

Cleveland

TS1

146

£541

81

£64,507

10.06%

6.

Preston

PR1

431

£1,027

586

£122,695

10.04%

7.

Dudley

DY5

53

£1,145

96

£143,527

9.57%

8.

Nottingham

NG1

79

£1,258

125

£169,521

8.91%

9.

Bradford

BD1

226

£478

82

£64,903

8.84%

10.

Kirkcaldy

KY1

105

£892

368

£124,254

8.61%

11.

Liverpool

L3

167

£1,035

716

£146,712

8.47%

12.

Newcastle

NE6

425

£826

229

£117,863

8.41%

13.

Huddersfield

HD1

127

£724

151

£104,394

8.32%

14.

Manchester

M6

130

£1,035

94

£150,550

8.25%

15.

Leeds

LS6

1,128

£1,482

43

£217,154

8.19%

16.

Sheffield

S2

238

£702

122

£104,376

8.07%

17.

Newcastle

NE1

308

£1,152

115

£172,225

8.02%

18.

Liverpool

L5

45

£574

145

£86,245

7.99%

19.

Manchester

M14

279

£1,335

78

£200,852

7.98%

20.

Sunderland

SR1

107

£539

32

£82,125

7.87%

21.

Liverpool

L8

169

£841

168

£135,323

7.45%

22.

Cardiff

CF37

128

£844

209

£136,267

7.43%

23.

Glasgow

G3

37

£1,178

30

£192,032

7.36%

24.

Aberdeen

AB11

198

£762

31

£125,125

7.30%

25.

Newcastle

NE2

555

£1,250

118

£205,479

7.30%

And where to avoid

At the other end of the scale, soaring house prices mean yields in London and the South East are the lowest in the country with landlords in parts of London managing an average annual yield of under 2%.

Here, the high cost of property means it can take landlords years to cover their costs and start making a profit.

These are the postcodes that offered the lowest yields of the 2,700 postal areas Totally Money surveyed.

[Need a new mortgage for your main residence? Compare rates]

 

Town

Postcode

Properties for Rent

Median Rental Value

Properties for Sale

Median Asking Price

Yield

1.

Bournemouth

BH13

72

£1,714

202

£1,456,539

1.41%

2.

London

N2

230

£3,702

186

£2,994,317

1.48%

3.

Birmingham

B70

52

£633

82

£450,639

1.68%

4.

London

N6

172

£2,899

197

£1,971,822

1.76%

5.

Bournemouth

BH14

81

£1,293

229

£831,035

1.86%

6.

Slough

SL1

381

£1,071

499

£674,362

1.90%

7.

Exeter

EX8

38

£717

139

£448,774

1.91%

8.

London

NW11

498

£2,456

282

£1,523,534

1.93%

9.

Birmingham

B15

83

£963

75

£587,683

1.96%

10.

Bromley

BR7

31

£1,414

132

£854,160

1.98%

11.

Leeds

LS18

42

£512

45

£302,086

2.03%

12.

Gloucester

GL53

40

£877

55

£516,842

2.03%

13.

Harrow

HA6

129

£1,736

190

£987,810

2.10%

14.

Kingston-upon-Thames

KT20

32

£1,702

189

£967,397

2.11%

15.

Slough

SL8

35

£1,425

52

£778,236

2.19%

16.

Enfield

EN6

75

£1,304

320

£710,537

2.20%

17.

Hemel Hempstead

HP23

35

£1,092

138

£593,300

2.20%

18.

Southampton

SO41

47

£1,286

350

£695,635

2.21%

19.

Huddersfield

HD9

35

£679

222

£364,310

2.23%

20.

London

NW5

184

£2,088

179

£1,111,065

2.25%

21.

London

N10

200

£1,747

222

£923,278

2.27%

22.

Brighton

BN3

167

£1,665

313

£876,105

2.28%

23.

London

N20

90

£2,442

185

£1,284,812

2.28%

24.

London

SW8

576

£2,685

1,185

£1,403,592

2.29%

25

London

NW7

171

£1,948

309

£1,010,503

2.31%

Have you been put off buy-to-let by falling yields, or have you bought student property in a far away city so you can make a decent return? Tell us in the comments below.

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