Some buy-to-let landlords are bracing themselves for smaller profits over the coming years as a result of the new mortgage interest tax relief rules, but that does not mean that there are no longer high rental yields achievable – you just need to know where to look.

Property peer-to-peer lender Kuflink has examined the average rental yield in 50 major towns and cities across the UK and found that properties in Salford in the North West of England offered the highest yield in the first quarter of the year, at an average of 7.08%, followed by Leeds, Manchester and Coventry.

London unsurprisingly sits among the bottom of the rankings, given the high cost of buying property in the city, with returns of just 3.45% achievable on average in Q1. But it was Chelmsford in Essex that provided the weakest returns, of just 2.89%.

In all, rental yields in Q1 2017 across the UK remained broadly stable, with the gap between buy-to-let yields in the North and South of England shortening.

Tarlochan Garcha, CEO at Kuflink, commented: “This index shows that savvy investors should look to the regions where strong rents and more affordable house prices make for fruitful investment opportunities. The Northern Powerhouse is leading the way, while London falls by the wayside, as rents fail to keep up with rocketing house prices.

“The stability of both house prices and rents is a positive sign for buy-to-let investors, proving the strength of the UK’s property market, which is able to withstand the uncertainty surrounding the UK’s exit from the EU.

“The following few months will be the true test of the market, as Article 50 negotiations get underway.”

The below table shows the ten towns and cities that provide the highest average rental yields

The below table shows the ten towns and cities that provide the lowest average rental yields

The below table shows the ten London boroughs that provide the highest average rental yields

The below table shows the ten London boroughs that provide the lowest average rental yields