You could be forgiven for thinking that anyone who wants to make money from investment property should head to London. In some parts of the capital a third of the housing stock is given over to rental property, and average rents top £2,000 a month. It looks like the perfect market.
However, we've done the maths, and discovered that despite all this, London has one major drawback for property investors: the cost of buying the property in the first place. It means that despite sky-high rents, average rental yields often fall well below 4%.
If you want a better return on your investment, you need to look beyond London, to some of the regional cities that offer average returns of up to 8.7%.
Take a look at the top ten hotspots offering the best returns for property investors: