By Sarah Macklin 
Getting onto the buy-to-let ladder has never been more challenging. Interest rates are higher, regulations are tighter, and tenant protections have changed the way landlords operate. That means if you’re an investor, choosing the right location is more important than ever.
To help, Archimedia Accounts analysed property prices, rents, and yields across the UK to reveal where landlords can still make a healthy return.
Here’s what they found.
What is gross rental yield?
Before we dive in, let’s clear up what “yield” actually means.
Gross rental yield is the annual rental income of a property, expressed as a percentage of the property’s purchase price.
So if you buy a flat for £100,000 and it rents for £500 a month (£6,000 a year), your gross yield is 6%.
It doesn’t include costs like maintenance, insurance, or void periods, but it’s a useful way to compare potential investments at a glance.
The top 3 buy-to-let hotspots in 2025
If you’re thinking of purchasing a buy-to-let, where are the best places to do so? This information is based on data that analysed local property prices (flats) and the average monthly/yearly rental income within that location to find the highest gross yield potential.
Boston, Lincolnshire – 7.07% yield
Average flat price: £80,402
Average monthly rent: £495 (£5,940 a year)
Boston tops the list with the highest gross yield in the UK for 2025. Affordable property prices combined with steady rental demand give landlords a healthy return.
Boston is a market town with around 71,000 residents, sitting less than two hours from Nottingham and Leicester. It offers both affordability and scenery, making it attractive to renters (especially remote or hybrid workers).
Why it works for landlords: Low entry price, strong demand, and a balance of town life with countryside appeal.
Blackpool, Lancashire – 6.35% yield
Average flat price: £74,364
Average monthly rent: £412 (£4,944 a year)
Blackpool, famous for its seafront and tourism, offers some of the cheapest flats in the UK alongside solid rental demand. The population has been growing modestly, and its proximity to Manchester and Liverpool makes it well-connected.
Why it works for landlords: Tourism boosts seasonal demand, property prices are low, and tenants value the seaside location.
Bolsover, Derbyshire – 6.15% yield
Average flat price: £90,302
Average monthly rent: £483 (£5,796 a year)
Bolsover’s yield might be slightly lower than Boston or Blackpool, but the area is growing quickly. With its historic castle, access to the Peak District, and location within commuting distance of Sheffield and Nottingham, it has both lifestyle appeal and practical rental prospects.
Why it works for landlords: Population growth, commuter links, and a desirable setting make it a strong long-term bet.
Other strong contenders
Beyond the top three, other areas also showed promising yields:
- Middlesbrough – 6.13%
- Sunderland – 6.02%
- Fenland – 5.85%
- Redcar and Cleveland – 5.81%
- Hartlepool – 5.73%
- Hyndburn – 5.72%
- Telford and Wrekin – 5.71%
All of these locations offer relatively affordable property prices compared to the national average, with consistent tenant demand.
Which areas are the least profitable for buy-to-let properties?
Of course, it’s not surprising that the least profitable area for a but-to-let is London. Specifically Kensington and Chelsea (1.77% yield).
Average flat price: £1,126,592
Average monthly rent: £1,798 (£21,576 a year)
Despite eye-watering rental prices, the sheer cost of buying makes yields in Kensington and Chelsea very low. Unless you’ve got serious capital and are chasing prestige rather than profit, it’s not the place for a small landlord looking to grow returns.
What this means for landlords in 2025
Chris Demetriou, co-founder of Archimedia Accounts, summed it up:
“Buy-to-let can quickly become stressful and financially risky if not carefully planned. Yet the UK’s housing demand continues to outpace population growth, keeping the market alive and, in some areas, thriving.”
In Q1 2025, £10.5 billion worth of new buy-to-let loans were issued, and average mortgage rates eased to 4.3%. Gross rental yields also nudged upward to 6.94%.
So while some landlords are leaving the market, opportunities remain, especially in towns where property is affordable, rental demand is strong, and yields are climbing.
If you’re considering buy-to-let in 2025, the big lesson is look beyond London and head further north.
Places like Boston, Blackpool, and Bolsover may not have the glamour of Kensington, but they deliver the numbers that matter, which are steady tenants and higher yields. For landlords willing to think outside the box, these towns could be the key to profitable property investment this year.
