As house prices have risen sharply in recent decades, many had thought that the sub-£100,000 house that returned double-digit gross returns had gone for good.

But research by a leading property firm has revealed the postcodes where returns are two, and even three times the national average.

Property market research by Inventory Base reveals that while the national average gross return for a rented property is 4.3% based on a £333,000 house price and £1,206 rental income, some areas where homes cost under £100,00 can generated gross returns of up to 13%.

That’s true of Bradford’s BD1 postcode where the average house price is £63,988 and monthly rent £697, and is the highest yield across all UK postcodes, regardless of the initial investment cost.

The others are:

SR1

The SR1 postcode in Sunderland has an average house price of £66,769 and an average rent of £611 per month, generating an average yield of 11%.

AB24

Aberdeen’s AB24 postcode also has an average house price of £92,708 and with rents averaging £710 per month or 9.2%.

TS3

In fourth place on the list for high yields with a sub-£100,000 investment is the TS3 postcode district of Middlesbrough. It has an average house price of £90,528 and an average rental income is £648 per month, or a gross yield of 8.6%.

HU2

The HU2 postcode in Kingston upon Hull offers an average yield of 8.3% based on a house price of £90,853 and rental income of £632 per month.

But these figures should be taken with a pinch of salt. They do not include the costs of maintaining and repairing a property nor the tax that is paid on the income, while many areas which feature low-cost properties are likely to feature tenants less likely to pay the rent on time and where void periods are more common.

“It’s essential to remember that regardless of how much you invest, or where, your responsibilities as a landlord remain the same,” says Steve Rad CEO at Inventory Base (pictured).

“Cutting corners operationally in order to maximise returns is a sure fire way to lose money in the long run and so it’s important to carry out every aspect to the same professional level, whether that be property management, securing a tenant’s deposit, or conducting inspections and inventory checks.”