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More hotspot news – Midlands rental properties offer the best buy-to-let yields

Wednesday 31 October 2018

New data suggests that the Midlands offers the highest return on buy-to-let investments in England and Wales for landlords.

Regional hot-spot news on rents, yields, house prices and demand hit our headlines at Simple Landlords Insurance every week or so. 

This time the figures come from online agency yieldit, based on their own properties, and show a 2.5 per cent difference in net rental yields between the best performing and worst performing regions.

Of its available residential properties, the Midlands came out on top, with an average net yield of 6.6 per cent including properties in popular commuter town, Tipton.

Yorkshire, thanks particularly to high yielding areas like Bradford and Scarborough, along with the North East, Wales and the North West followed, with each region commanding average net yields of at least 5.5 per cent on average.

The South East and East of England lagged behind with averages of 4.4 per cent and 4.1 per cent respectively.

The data shows that London pulled down the average of the South East with net yields of just 3.7 per cent.

Ryan Hughes, the head of sales at yieldit, said: “As always it's interesting to look at which areas are performing the best in terms of NET yields. 

"It's no surprise to see the Midlands leading the way with attractive asking prices and rising tenant demand. 

“It's clear that high property prices in the south and London have had a negative impact on net yields and as such investors are looking further afield. 

"As renters continue to abandon the capital in favour of our regional cities we are seeing landlords follow – a trend that shows no sign of abating any time soon.”

Average net yield by region according to yieldit's available properties:

Midlands – 6.6 per cent

Yorkshire – 5.7 per cent

North East – 5.6 per cent

Wales – 5.6 per cent

North West – 5.5 per cent

South East – 4.4 per cent

Wales – 5.6 per cent

East of England – 4.1 per cent

London – 3.7 per cent.

Richard Truman, Head of Operations at Simple Landlords Insurance, added: “It’s always interesting to keep track of the figures around up and coming investment areas, but all data needs to be carefully analysed. 

“If you are looking at new investment areas, do your due diligence. Check out local house prices and rents, talk to the council about licensing and restrictions, and investigate infrastructures and town development plans.”

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