London’s soaring house prices – and the growing gulf between the capital and the rest of the country – have captured the UK property headlines during 2013.

But London slips well down the league table when it comes to the highest yields for buy-to-let landlords, according to a survey of 50 UK cities by online property portal Zoopla.

Average gross yields from buy-to-let properties in the capital were 5.1 per cent, dwarfed by Coventry, which topped the table with average gross yields of 8.9 per cent.

Many of the leading cities (full table below) have thriving universities, a significant factor in boosting rents and yields.

Lawrence Hall of Zoopla.co.uk, said: “The largest yields are found in areas where there is the combination of high demand for rental accommodation but relatively low property prices. This allows landlords to purchase investment properties at a reasonable price while rents remain competitive due to the imbalance of supply and demand.

“Areas such as Coventry, Southampton, Liverpool and Manchester are good examples of this. All have large populations which may not be able to afford to purchase a property, despite the relatively low prices and so rely on the private rental sector. In contrast, areas such as London have lower yields despite some of the highest demand for rental property. This is due to sales prices being so much higher having a significant impact on landlord returns.”

However, Lucian Cook, head of residential research at Savills UK, cautioned that many of the areas could be subject to costly void periods and that landlords should be selective about where they buy property.

“Investors should have regard to the fact that the highest yields are generally available in lower value urban markets of the Midlands and the north where the prospects for house price growth in the next five years are some of the weakest. Those looking for a balance between income yield and prospective price growth in the medium term should look towards markets such as Oxford, Southampton and York, investing across a range of stock from flats to small family houses.”