terraced houses in London, buy-to-let investment

Two-bedroom properties considered best buy-to-let investment

When looking at current rental yields, two-bed properties make the best buy-to-let investment across England, according to research by lettings management platform Howsy. Two-bed properties boast an average yield of 4.8%, while one-beds come in at 4.1%, three-beds at 4.5% and four or more bedrooms at 3.6%.


Calum Brannan, founder and CEO of Howsy, stated: “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.”


The North of England offers the best yields


Investing in two-bed properties in the north can bring even higher yields. The average rental yield for two-beds in the North East comes to 5.5%. The North West has the second highest average yield of 5.3%, while Yorkshire and the Humber follows close behind with 5.2%.


The best buy-to-let investment in London


In London, the average rental yield for a two-bed property is 4.5%, making it the only region where this type of buy-to-let property investment doesn’t offer the best yields. One-bedrooms boast the best yields in the capital with an average rental yield of 4.6%.


The CEO of Howsy commented: “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.”


Assess buy-to-let property investments


To assess a buy-to-let investment deal, use PropertyMenu’s deal calculator to estimate a property’s potential rental yield, which is impacted by the number of bedrooms in a property.


Calculating the estimated operating costs and potential earnings of a property investment can help investors make more informed decisions on what buy-to-let investment is right for them.

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