The four signals to combine
- Yield — gross rent ÷ price, scaled to UK national percentiles.
- Rental demand — how quickly tenants are absorbing supply.
- Supply constraint — whether new stock is keeping up with demand.
- Regulation — Article 4 directions and selective licensing exposure.
Where to start
Compare the highest-yield postcodes against the lowest regulation-risk postcodes. Districts that appear in both are usually the most defensible BTL plays.