UK Landlord Indexh0m3

The towns and cities with the best ROI for landlords

Investing in property to rent can be a lucrative business, and buying property in some cities can give an excellent return on investment, allowing landlords to make a substantial profit on their initial investment.


We wanted to find out which cities are the best for landlords, so we delved into the data of average house prices versus average rental prices to discover which cities offer the best return on investment.

Landlord ROI Explained

In order to work out ROI, we took the average price of a house in each city and worked out the mortgage repayments based on a 35-year term, 20% deposit and 3% interest rate. By comparing the monthly repayment costs to the average monthly rental prices, we were able to find the annual profits, converting this into a percentage of the overall cost of a house to give the ROI.

The UK Cities with the Best ROI for Landlords

The North is the place to invest according to our research, with the Lancashire city of Preston offering the best return on investment. The average home sells for £176,378 while the average rental price is £981 PCM. This gives landlords a profit of £438 per month and £5,256 per year, giving an ROI of 2.98%.


Properties in Scotland ranks very well in the top ten, with three Scottish areas appearing. Glasgow, Dundee and Paisley all offer an excellent return on investment for landlords.

  1. Preston – £5,256 profits per year – 2.98% ROI
  2. Coventry – £6,033 profits per year – 2.74% ROI
  3. Glasgow – £4,836 profits per year – 2.67% ROI
  4. Swansea – £4,478 profits per year – 2.54% ROI
  5. Dundee – £3,965 profits per year – 2.47% ROI
  6. Manchester – £5,015 profits per year – 2.14% ROI
  7. Paisley – £2,746 profits per year – 2.12% ROI
  8. Leeds – £4,339 profits per year – 1.90% ROI
  9. York – £5,405 profits per year – 1.85% ROI
  10. Stoke-on-Trent – £2,481 profits per year – 1.73% ROI
The Scottish Cities with the Best ROI for Landlords

If we look only at Scotland, we can see that there are plenty of cities north of the border that offer the perfect situation for landlords. Glasgow offers the best profit potential, with the average house costing £181,245, while the average rental cost is £961 PCM. This gives a monthly profit of £403 and an annual profit of £4,836 with an ROI of 2.67%.

  1. Glasgow – £4,836 profits per year – 2.67% ROI
  2. Dundee – £3,965 profits per year – 2.47% ROI
  3. Paisley – £2,746 profits per year – 2.12% ROI
  4. Edinburgh – £5,186 profits per year – 1.71% ROI
  5. Inverness – £2,660 profits per year – 1.45% ROI
  6. Livingston – £1,669 profits per year – 0.89% ROI
  7. Hamilton – £1,281 profits per year – 0.85% ROI
  8. Kirkcaldy – £705 profits per year – 0.53% ROI
  9. Cumbernauld – £729 profits per year – 0.51% ROI
  10. Dunfermline – £518 profits per year – 0.29% ROI
The UK Cities with the Worst ROI for Landlords

While some cities offer an excellent return on investment for landlords, others have house prices so high that it can be hard to turn a profit. Of course, these figures are averages, so this doesn’t mean that all landlords will be making a loss on their properties. However, Warrington ranks as the worst city for landlords in terms of ROI. While the average house costs £254,189, the average rental price is just £566 pcm, making it a great place for renters, but a less lucrative city for landlords.

  1. Warrington – £2,599 losses per year – -1.02% ROI
  2. Cambridge – £4,618 losses per year – -0.86% ROI
  3. Crawley – £1,698 losses per year – -0.50% ROI
  4. Poole – £1,776 losses per year – -0.40% ROI
  5. Swindon – £908 losses per year – -0.36% ROI
  6. Reading – £1,231 losses per year – -0.32% ROI
  7. Doncaster – £307 losses per year – -0.18% ROI
  8.  Perth – £296 losses per year – -0.17% ROI
  9. Luton – £441 losses per year – -0.15% ROI
  10. Oxford – £865 losses per year – -0.15% ROI
Scotland Versus England

When we look at the average prices and profit potential across all the cities, we can see that there is a wide difference in ROI between England and Scotland. Taking an average of all prices and figures, Scotland appears to offer much more profit potential to landlords than England.


While the average annual profit for a Scottish landlord would be £1,909 with an average ROI of 1.06% according to our figures, English landlords are more likely to struggle to make a profit, with an average loss of £227 per month and an average ROI of -0.06%.


 We took our list of cities from the most populated cities in the UK according to World Population Review, as well as the most populated Scottish cities.


Average house prices are taken from Rightmove while average rental prices are taken from Zoopla.


We used Money Advice Service to work out the mortgage repayments based on a 20% deposit, 35-year mortgage term and 3% interest rate. When compared to the average rental prices PCM, this gave us average profits.

Thank you! Your subscription has been confirmed. You'll hear from us soon.