Zoopla analysed urban areas across Britain, excluding London, to find out where investors could expect to get higher returns - weighing up how expensive a property may be to buy against the potential rent landlords could expect to generate.
Average asking prices on two-bedroom homes and average rents on such properties were analysed.
Rochdale came out on top, with a typical gross yield of 9 per cent, followed by Blackpool - where landlords could potentially make an 8.6 per cent return on their investment.
Glasgow was in third place, with a 7.96 per cent yield projected.
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Northern England and Scotland dominated the top 10 list, with Wigan, Middlesbrough, Dundee and Durham also included.
The percentage yield was calculated by dividing the average yearly rent by the typical price of the property and multiplying this by 100.
Zoopla also looked at where landlords could expect to get lower percentage returns - and found many places in London’s commuter belt topped the list.
St Albans was identified as the worst performer, with a projected return of 3.65 per cent.
With an average price tag sitting just below £100,000, landlords could buy around four two-bedroom homes in Rochdale for the price of just one in St Albans.
Croydon, High Wycombe and Watford, which along with St Albans are also popular with London commuters, were also on the list of places with the lowest percentage yields, as was Bath in the South West.
Stamp duty and other tax changes in recent years have been blamed for eating into landlords’ profits.
Annabel Dixon, of Zoopla, said: “This research shows landlords and potential landlords where there are still opportunities in the buy-to-let market.
“Despite the challenges facing the sector, yields - particularly in north England and Scotland - match up well against other forms of investment.
“It’s no surprise that towns further south provide lower yields. House price growth has slowed, but property is still considerably more expensive in these
locations, meaning that even with higher rents, the returns are more limited for landlords.
“However, there are still pockets of opportunity for those who thoroughly research their local housing market.”
Here are the top buy-to-let towns and cities across Britain by gross yield according to Zoopla, excluding London and based on a two-bedroom property.
Figures show average asking price of a home followed by average monthly rent and gross yield:
1. Rochdale, £98,360, £738, 9.00%
2. Blackpool, £94,509, £678, 8.60%
3. Glasgow, £116,902, £775, 7.96%
4. Wigan, £101,689, £601, 7.09%
5. Middlesbrough, £84,728, £489, 6.92%
6. Sunderland, £91,145, £508, 6.69%
7. Dundee, £109,750, £611, 6.68%
8. Durham, £98,436, £533, 6.50%
9. St Helens, £85,909, £463, 6.46%
10.Bradford, £87,987, £469, 6.40%