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
Solutions to fix construction skills
The Centre for Social Justice (CSJ) has released a report titled, ‘Skills to Build: Fixing Britain’s construction workforce crisis.’ After speaking to several organizations and having roundtables to garner a wide understanding of the sectors’ perspectives and needs, they have proposed twenty six recommendations that will fix the issues underpinning the skills crisis. Richard Beresford,…
Read More 
Budget Commentary – Mansion Tax, Business Rates & Planning Reform
Andrew Teacher, Co-founder at LauderTeacher, one of the UK’s leading advisors on real estate communications, investor relations and a former spokesman for the BPF, comments on the potential Budget. Mansion tax “Nobody likes paying tax, but the reality is a council tax revaluation is long overdue. Rather than distorting the market, which is what a…
Read More 
Budget 2025 market data & home-mover and agent insight
Speculation about property tax changes is fuelling uncertainty across much of the market Rightmove research found that home-movers would favour staggered stamp duty payments, while a poll of estate agents also suggested that staggered payments would be a preferable change to shifting payment to the seller Rightmove data on rumoured property tax changes Mansion Tax…
Read More 
Breaking Property News 24/11/25
Daily bite-sized proptech and property news in partnership with Proptech-X. Symple resolves four core issues in the new Renter’s Rights Act Automating compliance in the new PRS landscape The Renters’ Rights Act has raised the bar for private landlords in England in terms of property condition, hazard resolution, evidence of compliance and regulatory registration. Symple…
Read More 
What does Rachel Reeves have in store for the UK property market?
With the Autumn Budget now just days away, speculation is mounting that the Chancellor, Rachel Reeves, will use property taxation as a central tool to address the widely reported fiscal shortfall of between £20bn and £40bn. As a result, the housing market has entered a period of caution, with asking prices falling 1.8 percent in…
Read More 
Why Property Guarantors Need Legal Advice Before Signing
When it comes to property deals, it’s natural to look for additional support, especially when you’re not fully confident about meeting the terms of the agreement. This is where a guarantor comes into play, as they step in to give the property owner some assurance. The idea of helping someone you trust can feel quite…
Read More