Two bedroom properties produce the best yields for buy to let investors according to the latest research.
Lettings management platform Howsy has looked at current rental yields across one bed, two bed, three bed and four-or-more bed properties; it’s assessed the average cost of buying each property type and the average rent they command.
The research shows that across England, two-bed properties make by far the best investment option with the average yield at 4.8 per cent.
This compares to 4.1 per cent for a one bed, 4.5 per cent for a three bed and 3.6 per cent for properties with four or more bedrooms.
It also seems that investing in a two bed up north is a better bet to maximise those rental yields with the North East seeing the highest average yields for a two bed property at 5.5 per cent.
The North West is the next best option with the average rental yield for a two bed at 5.3 per cent, followed by Yorkshire and the Humber on 5.2 per cent.
The average rental yield for a two bed in London currently sits at 4.5 per cent.
Howsy chief executive Calum Brennan says: “As a landlord, maximising the profitability of your buy to let investment is as vital now as its ever been and property size and type are as important as location when it comes to doing so.
“While the two bed property is traditionally the most popular amongst tenants and landlords due to the additional size without going overboard on costs, there is a slight regional variation in the capital.
“This is of course, due to the high rents you can secure in London even on a one bed and the overwhelming demand for properties that have seen even the smallest ‘studio flats’ rent for above average prices.”