The best places to be a long-term landlord
When it comes to being a landlord, yields play an essential role where profitability is concerned. However, one aspect of an investment that is often forgotten is the appreciation of bricks and mortar itself.
Leading lettings management platform, Howsy, has looked at which areas have been the kindest to current landlords when considering both the rental yield available and the increase in house price over the last year.
The figures show that across the UK, house prices are up just 2% annually while yields currently sit at 5%.
London is the region home to the most favourable combination with an increase of 5% in property values, while the average buy-to-let returns a 4% yield.
The North West and South West also offer a similar combination of 3% and 4% in house price growth and 5% and 4% in rental yields respectively.
While Glasgow may be home to the highest average rental yield at the moment, the best combination of yield and price growth in the UK is Rossendale. The area may have a marginally below-average yield of 4%, but with property values increasing by 18% in the last year, it’s home to the highest combination of rental income and house price growth.
The Wyre Forest is home to similar statistics. A below-average rental yield of 3% may bring a smaller monthly income via rent, but with prices up 17% in the last year, it has made an excellent all-round investment.
Pendle is home to an above-average rental yield of 6% with price growth at 13% annually, while Hackney offers current rental returns of 3% with property values up 15% annually.
Gravesham, Hyndburn, Kensington and Chelsea, Westminster, Dundee and Leicester also rank high where the combination of rental yields and house price appreciation is concerned.
|
Primary level – nations
|
|||
|
Location
|
Annual House Price Growth
|
Current Average Rental Yield
|
Combined (For Ranking)
|
|
Northern Ireland
|
4%
|
5%
|
9%
|
|
Scotland
|
1%
|
6%
|
7%
|
|
England
|
2%
|
4%
|
6%
|
|
Wales
|
1%
|
4%
|
5%
|
|
United Kingdom
|
2%
|
5%
|
7%
|
|
Secondary level – regions
|
|||
|
Location
|
Annual House Price Growth
|
Current Average Rental Yield
|
Combined (For Ranking)
|
|
London
|
5%
|
4%
|
9%
|
|
North West
|
3%
|
5%
|
8%
|
|
South West
|
4%
|
4%
|
8%
|
|
North East
|
2%
|
5%
|
7%
|
|
East Midlands
|
2%
|
4%
|
6%
|
|
South East
|
2%
|
4%
|
6%
|
|
East of England
|
2%
|
4%
|
5%
|
|
West Midlands Region
|
0%
|
4%
|
5%
|
|
Yorkshire and The Humber
|
-1%
|
5%
|
4%
|
|
Rankings – highest combination value
|
|||
|
Location
|
Annual House Price Growth
|
Current Average Rental Yield
|
Combined (For Ranking)
|
|
Rossendale
|
18%
|
4%
|
23%
|
|
Wyre Forest
|
17%
|
3%
|
20%
|
|
Pendle
|
13%
|
6%
|
19%
|
|
Hackney
|
15%
|
3%
|
19%
|
|
Gravesham
|
15%
|
3%
|
18%
|
|
Hyndburn
|
12%
|
6%
|
18%
|
|
Kensington and Chelsea
|
15%
|
3%
|
17%
|
|
City of Westminster
|
13%
|
3%
|
17%
|
|
City of Dundee
|
11%
|
6%
|
17%
|
|
Leicester
|
12%
|
4%
|
16%
|
You May Also Enjoy
Housing market gets off to its strongest start in three years, with new sales agreed up 12 per cent on 2024
Westminster council must outline how their proposals on property boards will not hinder market
National Federation of Builders View on Chancellor’s Speech
Landlords and Tenants: A Balanced Relationship in the Private Rental Sector (PRS)
Government Correct to Head Off Climate and Nature Bill