Due to the high demand for homes within close proximity, rental markets surrounding airports have traditionally been buy-to-let hotspots.
Research by lettings management platform Howsy has found that in the areas surrounding the UK's top 25 airports, just one now offers a rental yield above the UK average of 5%.
Due to the high demand for homes within close proximity, rental markets surrounding airports have traditionally been buy-to-let (BTL) hotspots.
However, the average rental yield across all 25 airports was found to sit currently at just 3.7%.
Only Glasgow continues to have above average rental yields, with the average yield surrounding the airport coming out at 6.9%.
East Midlands airport came in just below the UK average at 4.9%, while Birmingham, London Southend, Aberdeen, Liverpool, London Luton and London Heathrow provided the next best yields, between 4% and 4.4%.
At 2.5%, Bristol airport is home to the lowest current rental yield, followed by Humberside (2.8%) and London Stansted (2.9%).
Calum Brannan, founder and CEO of Howsy, said: “While the current pandemic is causing financial turmoil for many tenants and as a result, their landlords, it's also having an impact on buy-to-let profitability further up the chain.
"Traditionally, a buy-to-let close to a major airport would be in extremely high demand but with the aviation industry taking such a hit, the latest figures show profitability has slumped.
"However, the current climate does provide an abundance of opportunity for the savvy investor.
"Although changes will have to be made to the way we travel, when the aviation industry does bounce back, it will be a swift uplift in activity and therefore demand.
"Investing now could well mean a lower initial property cost with an eye on high rental demand further down the line and this will help increase your return dramatically in the long run.”
