Buy-to-let yields remain flat year on year – Here are the property pockets bucking the trend
June 26, 2020
The latest research from peer to peer investment platform, Sourced Capital, has revealed that buy-to-let rental yields have remained largely flat, up just 0.1% year on year.
In England, they’ve fallen by -0.1% while regionally London has seen an even greater decline with a drop of -0.2%.
However, this hasn’t been the case everywhere. The North East has seen an annual increase of 0.12% and on a local level, Corby has seen an uplift of 0.7% on an annual basis. Charnwood, Newcastle and Exeter have also seen positive growth with a jump of 0.5%.
Harlow in Essex and the Orkney Islands have enjoyed a 0.4% increase, along with Ealing which enjoys the largest increase of all London boroughs.
While Glasgow has seen a very marginal decline on an annual basis, the current average rental yield of 7.87% remains the strongest in the UK buy-to-let sector.
Inverclyde, West Dunbartonshire, Midlothian and East Ayrshire also remain some of the most profitable pockets, while outside of Scotland, Burnley, Belfast and Blackpool also rank well.
|
Top line rental yield and annual increase
|
|||
|
Location
|
2019 (Q1)
|
2020 (Q1)
|
Change (2019 to 2020)
|
|
North East
|
4.97%
|
5.09%
|
0.12%
|
|
East Midlands
|
3.90%
|
3.93%
|
0.03%
|
|
West Midlands
|
4.01%
|
4.03%
|
0.02%
|
|
North West
|
4.53%
|
4.55%
|
0.02%
|
|
Wales
|
4.0%
|
3.9%
|
0.00%
|
|
Yorkshire and The Humber
|
4.53%
|
4.52%
|
-0.01%
|
|
South East
|
3.73%
|
3.71%
|
-0.01%
|
|
Scotland
|
5.9%
|
5.9%
|
-0.02%
|
|
East of England
|
3.60%
|
3.55%
|
-0.05%
|
|
South West
|
3.83%
|
3.78%
|
-0.05%
|
|
Northern Ireland
|
5.4%
|
5.4%
|
-0.10%
|
|
London
|
4.32%
|
4.10%
|
-0.22%
|
|
England
|
4.1%
|
4.1%
|
-0.08%
|
|
United Kingdom
|
4.9%
|
4.8%
|
0.10%
|
|
Locations with the highest increase in average rental yield year on year
|
|||
|
Location
|
2019 (Q1)
|
2020 (Q1)
|
Change (2019 to 2020)
|
|
Corby
|
3.84%
|
4.52%
|
0.68%
|
|
Charnwood
|
2.99%
|
3.53%
|
0.53%
|
|
Newcastle upon Tyne
|
5.08%
|
5.60%
|
0.52%
|
|
Exeter
|
5.04%
|
5.52%
|
0.47%
|
|
Harlow
|
4.14%
|
4.51%
|
0.38%
|
|
Orkney Islands
|
4.81%
|
5.17%
|
0.36%
|
|
Ealing
|
3.71%
|
4.07%
|
0.35%
|
|
Lincoln
|
4.49%
|
4.84%
|
0.35%
|
|
Liverpool
|
4.78%
|
5.13%
|
0.34%
|
|
West Oxfordshire
|
3.88%
|
4.17%
|
0.29%
|
|
Barrow-in-Furness
|
5.21%
|
5.50%
|
0.29%
|
|
Merton
|
3.63%
|
3.90%
|
0.27%
|
|
King’s Lynn and West Norfolk
|
3.73%
|
3.99%
|
0.25%
|
|
North Lincolnshire
|
3.94%
|
4.20%
|
0.25%
|
|
Fylde
|
3.80%
|
4.04%
|
0.24%
|
|
Rushcliffe
|
3.13%
|
3.35%
|
0.23%
|
|
Swale
|
3.93%
|
4.15%
|
0.22%
|
|
Sefton
|
4.09%
|
4.30%
|
0.21%
|
|
City of Aberdeen
|
5.92%
|
6.12%
|
0.20%
|
|
Lambeth
|
4.14%
|
4.34%
|
0.20%
|
|
Locations with the highest current rental yield
|
|||
|
Location
|
2019 (Q1)
|
2020 (Q1)
|
Change (2019 to 2020)
|
|
City of Glasgow
|
7.90%
|
7.87%
|
-0.03%
|
|
Inverclyde
|
7.27%
|
7.36%
|
0.09%
|
|
West Dunbartonshire
|
7.05%
|
6.83%
|
-0.22%
|
|
Midlothian
|
6.97%
|
6.83%
|
-0.14%
|
|
East Ayrshire
|
6.50%
|
6.62%
|
0.11%
|
|
Burnley
|
6.57%
|
6.46%
|
-0.11%
|
|
Na h-Eileanan Siar
|
6.25%
|
6.27%
|
0.02%
|
|
City of Dundee
|
6.38%
|
6.24%
|
-0.14%
|
|
Belfast
|
6.54%
|
6.23%
|
-0.32%
|
|
Clackmannanshire
|
6.25%
|
6.20%
|
-0.05%
|
|
Falkirk
|
6.48%
|
6.18%
|
-0.30%
|
|
City of Aberdeen
|
5.92%
|
6.12%
|
0.20%
|
|
North Ayrshire
|
5.90%
|
6.09%
|
0.19%
|
|
Blackpool
|
5.96%
|
5.99%
|
0.03%
|
|
Renfrewshire
|
6.14%
|
5.98%
|
-0.16%
|
|
Moray
|
5.87%
|
5.95%
|
0.09%
|
|
South Lanarkshire
|
5.86%
|
5.90%
|
0.04%
|
|
County Durham
|
5.77%
|
5.90%
|
0.12%
|
|
Hyndburn
|
5.93%
|
5.78%
|
-0.14%
|
|
North Lanarkshire
|
5.84%
|
5.74%
|
-0.10%
|
You May Also Enjoy
Property expert on how to bag the BEST mortgage deal in today’s market
Finding a good mortgage deal in today’s market demands more than just comparing rates. While the average 2-year and 5-year fixed mortgage rates have gone down this year, they’re still higher than rates pre-pandemic. This means those in their current homes will have to pay more than they once were each month, and new buyers…
Read More 
Halloween Named the UK’s Most Popular Moving Day of 2025
Halloween was the most popular day to move house in 2025, breaking the long-standing trend of summer being the busiest time for home moves. We analysed the data and spoke to industry experts to understand why the peak moving day has shifted and why it fell on an international holiday. Compare My Move reviewed more than 170,000 house moves made in 2025 and…
Read More 
Industry Response to Halifax House Price Index
Industry response to the Halifax House Price Index December 2025 The latest index shows that: – On a monthly basis, house prices fell by 0.6% between November and December of last year. Annually, house prices were up 0.3% versus this time last year, although this annual rate of growth had slowed from 0.7% the previous…
Read More 
Halifax House Price Index December 2025
House prices in December 2025 were 0.3% higher compared to the same month a year earlier. UK house prices dipped in December • House prices dipped by -0.6% in December, following a -0.1% fall in November • Average property price is now £297,755, the lowest since June • Annual growth slowed to +0.3%, down from…
Read More 
Homebuyer demand returns following Autumn Budget
New research from Property DriveBuy reveals that Bristol, Tyne & Wear, and South Yorkshire emerged as the UK’s most in-demand areas of the housing market following the Autumn Budget, with as many as 61% of homes listed for sale successfully securing a buyer in Q4 2025. Property Drivebuy analysed residential listings data across the nation…
Read More 
Economic uncertainty tops agents’ worries in 2026
“Make-or-break” 2026 looms for estate agents as costs, red tape and reform pile pressure on sector Agents warn of ‘survival year’ ahead as new Alto Agency Trends Report reveals deep fears over rising costs and regulation UK estate and letting agents are heading into 2026 fearing a make-or-break year, as soaring costs, economic uncertainty and…
Read More