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
Housing sales end 2024 on a high, but buyers more cautious about how much to pay for homes as mortgage rates drift higher
Buyers and sellers returned to the market over 2024 building a sales pipeline 30 per cent larger than a year ago with 283,000 homes worth £104bn progressing to a sale in 2025. This is the largest end of year total value for four years. House prices have returned to growth with the average house price…
Read More 
£21 million to live on UK’s most expensive street
· Knightsbridge in London now the priciest UK street · The UK’s 10 most expensive streets all in the capital, with an average price tag of £16.5 million · East Road in Weybridge the most expensive address outside of London · Priciest UK properties are 60 times more than a typical home Lloyds has revealed…
Read More 
Breaking Property News 20/12/24
Daily bite-sized proptech and property news in partnership with Proptech-X. Why estate and letting agents must embrace innovative technology in 2025 As we step into 2025, the UK property market continues to shift, and estate agents face mounting pressure to meet the evolving expectations of buyers and sellers. The days when static images sufficed…
Read More
Breaking Property News 19/12/24
Daily bite-sized proptech and property news in partnership with Proptech-X. High street Auctions’ initiative launches to revive Britain’s town centres This month the UK Government rolls out its highly anticipated ‘High Street Auctions’ scheme, a flagship measure of the Levelling Up and Regeneration Act 2023. This initiative grants local authorities the power to take…
Read More 
Moving Up In The World: Finding Your Dream Home
Finding your dream home is one of life’s most exciting and transformative experiences. Whether you’re looking to upsize, relocate, or finally purchase that ideal property you’ve always envisioned, the journey is both thrilling and filled with important decisions. As you embark on this path, it’s essential to plan carefully, consider your priorities, and approach the…
Read More 
These cities are the keenest to move house in 2025
Bournemouth is the keenest area in the UK to move home, with 38,132 average monthly searches for moving-related topics per 100,000 residents. Plymouth is second, with 35,198 average monthly searches for moving, and Birmingham is third, with 35,181. Derry is the least keen area to move house, with only 3,170 average monthly searches related to…
Read More