Best rental yields for properties under £100K

Best UK rental yields for properties under £100K

The average house price in the UK is £286,500, which means buying a property for anything under this amount may be considered a bargain. For buy-to-let investors, the goal is finding a good balance between yield and capital appreciation, and areas with both of these traits tend to be up-and-coming.

What if we told you about the best UK rental yields for properties under £100K? You might think it’s impossible to find investments some £186,000 below the average property price, but they do exist.

With that in mind, we’ve put together this list of the best buy-to-let properties with the best rental yield and average prices lower than £100k.


Central Valleys,

The average house price in Central Valleys, Wales, is actually a little over £100,000. But given it has the best rental yields in England and Wales and is only £785.71 over the benchmark, it deserves a place on the list. 

Its compelling yield of 7.96% is a strong indicator of robust rental demand. Made up of areas such as Rhondda Cynon Taf and Merthyr Tydfil, the Central Valleys might not be the first place that come to mind as investment hotspots, but they provide food for thought for landlords looking to maximise their investment and returns.

If you bought a property priced £100k using a buy-to-let mortgage and paid a 25% deposit, you’d only be required to pay £25,000 up front. Moreover, homes in the Central Valleys achieve an average monthly rent of £696.92. These factors combined make them some of the best places to invest in the UK as far as yields and initial purchase price are concerned. 


Hartlepool and Stockton-on-Tees, £85,773.50

Hartlepool and Stockton-on-Tees boast an attractive yield of 7.90%. A wide variety of housing also means investors have plenty of choice when exploring this part of northeast England. Again, it’s not a traditional buy-to-let favourite, but with average house prices of just over £85k and average monthly rental income of £591, it’s hard to ignore Hartlepool and Stockton-on-Tees. 

But the appeal goes beyond housing options. Hartlepool is rich in maritime history, with attractions like the Hartlepool Maritime Experience. Stockton-on-Tees counters with one of the UK’s widest high streets and a major outdoor arts festival. Popular streets for investment include Riverston Close in Hartlepool, known for its detached houses and tranquil settings, and Norton Road in Stockton-on-Tees, which features a mix of residential and commercial properties. 

These areas aren’t just about high yields – they can potentially offer a well-rounded investment package, combining diverse property types, vibrant local culture and prime locations that make them top picks for buy-to-let investors.


South Teesside,

South Teesside is carving a niche in the property investment market with an appealing rental yield of 7.66%. An average property price of £96,499.99, plus diverse housing options, also gives investors plenty to think about.

Comprising areas like Middlesbrough, Redcar and Cleveland, there is plenty of choice if you’re thinking of investing in property in this area. Middlesbrough, in particular, is the largest city in Teesside and one of the more well-known areas in the region.

With an average house price of just under £100k, opportunities exist for investors, especially when you factor in the average of £646 per month in rental income. This, coupled with low property prices, means high yields and interesting opportunities for investors.


Lancaster and Wyre,

Lancaster and Wyre are catching the eye of property investors, offering a solid yield of 7.11%. With an average property price of £93,000, these two areas provide a range of housing options, from terraced houses to semi-detached homes.

But there’s more to Lancaster and Wyre than just the numbers. As a major city, Lancaster is home to historical landmarks like Lancaster Castle and the City Museum, while Wyre offers scenic spots like the River Wyre and open aspect views. These attractions add a cultural and natural richness to each area, enhancing their appeal.

The overall market trend suggests a strong demand for properties in these areas, making residential areas like Lancaster and Wyre potentially lucrative for investment. With average monthly rent of £575, these spots in the north west showcase why they’re such an appealing option for buy-to-let.



Another northeast spot, Darlington is a popular market town in the county of Durham. With a noteworthy yield of 6.83% and average property price of £85,370, Darlington offers an accessible market for a variety of investment budgets.

The housing landscape is diverse, featuring a mix of terraced and semi-detached homes. Beyond property, it’s easy to see the appeal for renters thanks to a rich history and attractions, such as the Head of Steam museum. It’s also home to beautiful parks like South Park.

Average monthly rental income in Darlington is in the region of £506 per month. And it’s ability to combine diverse property types with cultural and natural attractions makes it an interesting choice for buy-to-let investors.

Explore other areas in England and Wales with high rental yield by interacting with our rental yield calculator

Final thoughts: the hottest of hotspots with best rental yields

It’s rare to find areas in England and Wales where the average property price is under £100k. But with places like Hartelpool, Darlington and South Teesside, investors can still find a buy-to-let on the lower end of the price spectrum. Regardless of your budget, it’s good to know that a range of areas exist offering low barriers to entry and appealing yields. 

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