Rents are above average in both cities.
The East had seven towns and cities in the top 20, more than any other region. They were Cambridge, Peterborough, Luton, Southend, Basildon, Norwich and Chelmsford.
All cities offer solid long-term returns, with prices in the Southend up by 5.9pc in the past year – higher than any of the other cities in the top 50.
Jon Cooper, of Aldermore, said: “Landlords really have to be on top of their game to ensure they maximize their investment, looking for areas that offer value not only for the short term but for the longer term too.”
He added: “The mortgage industry has experienced a series of testing events with interest rate rises, uncertainty in the UK economy, as well as stamp duty shifts and looming Energy Performance Certificate changes; factors that are not only affecting landlords but also their tenants, putting both groups under pressure.”
To produce the ranking, Aldermore analyzed the average rent per room per month, short-term yield for a new buy-to-let purchase, the average property price rise over the last 10 years, the proportion of vacant properties in the city and the size of the private rental market.