HSBC's latest report reveals that rental yields in Reading and Brighton are the fastest growing in the UK as young professionals move out of London, but that Southampton is the number one opportunity for investors seeking rental income, with 8.73% yields available.

Dan Johnson of Themovechannel.com writes that returns have soared in Reading and Brighton by 12.8% and 12.6% respectively in the past year, but stand at 5.48% and 6.17%, far below those of Southampton.

The city’s standings is helped by the relatively inexpensive house prices, as well as strong rental demand driven by its position on the coast for seasonal workers and holidaymakers. Together with students attending the city’s university, the conditions are ripe for landlords. Indeed, a student property listing in Southampton has consistently been one of the most popular investment  opportunities on TheMoveChannel.com in recent months.

Manchester, Nottingham, Blackpool and Hull complete the top five locations with the best rental yield at 7.98 per cent, 7.67 per cent, 7.63 per cent and 7.47 per cent respectively. Manchester has climbed to second spot from 4th last year while Nottingham rises to 3rd from 5th as they both benefit from relatively low house prices but strong demand for rental property from large student and young professional populations.