The ‘new city’ of Milton Keynes, home to more bridges than Venice and more roundabouts than anywhere else in the UK, tops our charts in TwentyEA’s list of UK cities’ yield growth for Landlords.
Milton Keynes has the fastest growing rental yields in two out of our three categories of home and they are ranked 5th out of 27 cities for the remaining segment.
Budget Homes (1) in Milton Keynes – which are those selling for £205,500 in 2019 – had a rental yield of 4.82% in the same year. This had grown since the prior year by a whopping 7.9% and placed it in the top growth position and miles ahead of the chasing pack containing London, Oxford and Nottingham. The following chart outlines the growth in rental yields for Budget Homes and displays the top 10 cities in order of growth. Every city outside of the top 10 has falling rental yields for the Budget Home sector.
If we now turn our attention to the Family Home (2) segment, growth is much less staggering for all cities. However, Portsmouth tops the list, followed by Nottingham, London, Bristol and Milton Keynes. Growth in rental yields for Family Homes is shown below, highlighting the top 10 cities in order of growth. Again, every city outside of the top 10 has falling rental yields for the Family Home sector.
Finally, if we look at the Lifestyle Homes (3) segment, again we see that rental yields had grown in Milton Keynes since the prior year by 7.4% which placed it in the top growth position. The following chart outlines the growth in rental yields for Lifestyle Homes and displays the top 10 cities in order of growth. 
If you are interested in becoming a landlord in Milton Keynes, then our handy guide below shows you the typical cost to buy in our three segments, with the likely rent you could command per calendar month. Note that the highest rental yield for the capital is in the budget homes segment at 4.8%.
I don’t know when you last visited Milton Keynes, but it’s an extremely vibrant and economically active city. You can understand why the growth in yield is so large at either end of the spectrum as it certainly feels like demand is outstripping supply. From people entering the city who want to gain a foothold in the area, to the requirement for lifestyle homes for city commuters, the demand is for sure being fuelled by Milton Keynes growth, which certainly looks set to continue. You can expect the 130 roundabouts they have at the minute to rise further in the very near future.
Stay tuned as we continue analysing the data on letting properties across the UK. Next time: the big picture!
1 - Typical Budget Home value has been defined as the value of a home in the 25th percentile – i.e. where 25% of homes that were sold in 2019 are cheaper than this value and 75% of homes are greater than this value.
2 - Typical Family Home value has been defined as the median value of a home sold in 2019 – i.e. the middle value of all homes that were sold in 2019 if ranked in order of price.
3 - Typical Lifestyle Home value has been defined as the value of a home in the 75th percentile – i.e. where 25% of homes that were sold in 2019 are more expensive than this value and 75% of homes are cheaper than this value.