The research, which was compiled by HSBC, found Blackpool was hot on the heels of Southampton, offering rental yields of 7.81%. Kingston upon Hull took third spot with 7.77%.
The rental yield is calculated as the percentage of the price of the house returned to an investor over a year's rent.
Southampton takes the top spot thanks to a combination of high monthly rents (averaging £901) and relatively low house prices, with the typical property coming in at £138,311.
HSBC says seaside towns, such as Brighton, Bournemouth and Eastbourne, scored highly thanks to holiday rentals and season work. Other cities to score in the top 10 included Liverpool, Slough and Coventry.
London boroughs were mid-table due to the high cost of housing: Southwark was top with an average property price of just over £400,000 and monthly rents of £2,058, creating a typical rental yield of 6.15%.
Peter Dockar, head of mortgages at HSBC, said: "Buy to let remains a good investment for those looking for above average returns, with 23 of the top 50 areas offering yields above 5%, significantly more than is available from more traditional saving options.
"However, it is clear there is a fine line between a property in a desirable area, the rents that can be achieved and the returns that can be yielded so it is key landlords do their research as often the most popular locations may not offer the best return."
London boroughs were mid-table due to the high cost of housing: Southwark was top with an average property price of just over £400,000 and monthly rents of £2,058, creating a typical rental yield of 6.15%.
Peter Dockar, head of mortgages at HSBC, said: "Buy to let remains a good investment for those looking for above average returns, with 23 of the top 50 areas offering yields above 5%, significantly more than is available from more traditional saving options.
"However, it is clear there is a fine line between a property in a desirable area, the rents that can be achieved and the returns that can be yielded so it is key landlords do their research as often the most popular locations may not offer the best return."
