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%

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