The top city for rental yield has been revealed as Manchester, however the best overall returns are still offered by London, according to a new report.

The average rental yield in Manchester has reached 6.8% between 2010 and 2016, coming out on top in a list of postcode areas in England and Wales where rental returns are most profitable.

Other regions offering gross rental returns of 5.8% for investors include outer London, Coventry and Luton.

However, in terms of capital gains on property, the west central postcode area of London is the leader.

The region has experienced an average return of 11% while price growth has exceeded all other parts of the country.

East London tops the list for overall return on investment, including both rental yield and capital gain at 17.8%, whereas Sunderland has recorded the worst return on investment over the past six years at a minimal 3.2%.

“The report reaffirms that landlords can profit from investing north of London and this can sometimes be forgotten when London is seen as such a property power house,” said a spokesperson for Property 118’s landlord insurance provider Discount Insurance.

“Following Brexit, there has been a disparity in the performance of regions across the country therefore it is increasingly important for landlords to be aware of the effects when considering a new investment,” added the spokesperson.

Here are the latest figures for rental yields across the country: