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
New analysis shows majority of estate agents complete HMRC AML registration
Just 5% of branches still need to register More than 24,000 UK estate agency branches have registered with HMRC for money laundering supervision – an increase of around 2,300 branches in just over a year, according to new analysis from client due diligence platform Thirdfort. Some 24,003 estate agent branches across the UK have registered…
Read More 
Gen Z could wait until 2044 to buy a home
Getting on the property ladder has never been tougher, and, for Gen Z, it could take up to 18 years to save a deposit in the UK’s least affordable cities, according to new research from Beswicks Legal, comparing 40 urban centres. The figures reveal that in places like Cambridge and London, Gen Z buyers may…
Read More 
Pressure on landlords takes shine off BTL rate cuts
Buy-to-let fixed rates dipped to their lowest points since September 2022, and choice rose to a record high, according to Moneyfactscompare.co.uk. However, landlords are facing financial challenges, and rumours of more tax reforms in the Budget could hit investors hard. • Average buy-to-let fixed rates over two- or five-year have dipped to their lowest…
Read More 
Three steps to pet-proof your property ahead of new pet laws
Landlords across the UK are set for one of the biggest shifts in rental regulation in years as the Renters’ Rights Bill edges closer to becoming law. While the bill aims to give tenants a greater right to keep a pet, a new analysis highlights the stark reality of demand versus supply: with a dog…
Read More 
Budget-Friendly Ways to Boost Property Appeal
Upgrading a property’s appearance doesn’t always require a hefty budget. One of the most impactful yet affordable changes involves refreshing tired flooring, an element that potential buyers and tenants notice immediately upon entering a property. Carpet remnants have become a smart solution for cost-conscious property owners looking to make meaningful improvements, as they offer the…
Read More 
Naked tenants, basement brothels and maggot rain
When a company specialises in 24/7 property management support, it’s got to be ready to handle pretty much anything, as can be attested to by Adiuvo, whose managers have, on more than one occasion, received tenant requests that have caused them to pause and say, wait, what? Adiuvo has now pulled back the curtain on…
Read More