Since punishing tax changes were introduced in 2016, more investors have fled the buy-to-let market than have entered.

But last year it bucked this trend, marking a bounce-back for property investment. Landlords bought more homes in the first three months of this year than they sold, according to Hamptons, an estate agency. 

Investors have bought almost 43,000 homes so far this year, tempted back to the market by surging tenant demand and soaring rents. Could you be one of them?

Previously, we looked at where a £25,000 lump sum investment could get the most favourable returns, using data from Hamptons. 

But with a budget of £50,000, enough to cover a 25pc deposit and stamp duty, landlords can buy bigger, more profitable properties, and in areas with higher levels of demand. 

In the three locations we have highlighted below, an initial £50,000 investment would return an average gross yield of more than 9.6pc.

Isle of Anglesey

House price growth in Wales has consistently outpaced all other regions since the pandemic began, but property values remain relatively low in comparison. Rental yields are typically highest where house prices are lowest, so the country is popular with investors.

Landlords with a budget of £25,000 would be priced out of the Isle of Anglesey, just off the mainland’s north-west coast, which has an average gross yield of 9.8pc. But investors with deeper pockets can tap into its buy-to-let market.