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
UK monthly property transactions for May 2025
Headline statistics from the latest transactions data include: the provisional seasonally adjusted estimate of the number of UK residential transactions in May 2025 is 81,470, 12% lower than May 2024 and 25% higher than April 2025 the provisional non-seasonally adjusted estimate of the number of UK residential transactions in May 2025 is 80,530, 13% lower than May 2024 and…
Read More 
Construction Skills Mission Board (CSMB) shows the Government has a plan
The Construction Skills Mission Board (CSMB) held its first board meeting today (26 June 2025), where it set out a roadmap for recruiting 100,000 more construction workers a year by the end of Parliament. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “The Construction Skills Mission Board (CSMB) is a recognition…
Read More 
5 Strategies to Optimise Your Warehouse for Real Estate
The term fixer-upper can mean many things, from ‘slap some paint on the walls and it looks brand new’ to ‘will this building collapse if we open the front door?’ Indeed, in the dicey world of commercial property acquisition, each warehouse you buy will probably fall into both camps. Thinking about the viability of warehouses…
Read More 
HMOs sell for up to 50% above market average
New research from Excellion Capital, the boutique debt advisory and investment firm, reveals that HMOs sell for as much as 50% above the average house price, further increasing their investment potential after it was revealed that HMOs also create rental yields of up to 12.5%. After previous research from Excellion Capital recently showed that the…
Read More 
UK buyers struggle while 50,000 homes sit empty
As the UK housing crisis deepens, new analysis by Open Property Group exposes a worrying surge in so-called “zombie homes”- properties that sit unoccupied and deteriorating while millions struggle to access affordable housing. Key insights: 50,000+ long-term vacant homes in England alone 23,000+ of these have been empty for more than two years Estimated £13.6…
Read More 
Breaking Property News 26/06/25
Daily bite-sized proptech and property news in partnership with Proptech-X. The UK is Europe’s second most distressed market despite headline GDP growth Retail and Consumers Goods has emerged as the most distressed sector in Europe, with distress levels now the highest since the global financial crisis, according to the latest Weil European Distress Index (WEDI). The…
Read More