We’re all for an optimistic interpretation of events but a new tool from comparison website GoCompare lists the UK’s top buy to let locations – and puts London as number two, despite low yields and capital values dipping.

This is despite the tool saying that capital appreciation for investors is now in negative territory and average rental yields are very low at 3.05 per cent. Manchester is ranked as the best place to rent out a house with an average yield of 5.55 per cent.

The new tool compares cities across data points such as average property price and rental yields, local population aged under 35, the number of properties available, frequency of letting/maintenance agencies, number of new housing developments, and the volume of properties currently available for rent along with a history of rental price growth.

Broken down by category, in terms of average property price Stoke-on-Trent comes out as the least expensive area to buy rental property with an average purchase price of £106.000. 

Oxford is one of the most expensive cities on £411,000. London is of course the most expensive with an average £484,000 purchase price. 

In terms of rent growth, Manchester’s top place growth 5.76 per cent over the past year is followed by Leicester on 5.30 per cent and Cardiff on 5.0 per cent.

Finally for yield again Manchester is best (5.55 per cent) and then Sunderland (5.37 per cent) and third place goes to Liverpool (5.05 per cent).