Biggest climbing buy-to-let hotspots in the pandemic market lockdown
Latest research from lettings management platform, Howsy, has revealed the pockets of the UK rental market currently registering the strongest yields, as well as those that have seen yields increase despite the current pandemic.
See the data on the best and biggest increases here.
The figures show that the current average UK rental yield sits at 3.5%, having seen a marginal decline from the 3.6% registered prior to the pandemic hitting in December of last year.
However, even with the obstacles that the current landscape presents, there are still a number of buy-to-let pockets providing strong returns for landlords who want to invest in property.
Bradford is home to the highest average yield at 10%, far better than the UK average, with Gwynedd (6.2%) and North Down (6%) also home to an average yield of 6% or more.
Glasgow, Liverpool, Preston, West Dunbartonshire, North Lanarkshire, Forest Heath and Manchester also rank high, while at the other end of the scale Kensington and Chelsea, Malvern Hills and Chiltern are home to the UK’s worst average yields at 2.3%.
Despite the problems posed by the current pandemic, predictions of house prices falling while rental demand remains high could mean an increase in yields, as the investment cost to return ratio becomes more favourable.
But even before this materialises, there are patches of the UK buy-to-let market that have already seen yields increase since November.
The largest has been in North West Leicestershire, where yields are up 1.4% during the pandemic. Arun, Corby and West Norfolk have also enjoyed an increase of 0.8% in rental yields, with North Dorest and Newark and Sherwood seeing a 0.7% uplift.
Kettering, Derby, Breckland and Falkirk also make the top 10 for largest pandemic rental yield uplifts.
Rhondda Cynon Taf, York, Gedling, Chiltern and the Vale of Glamorgan, however, have seen the largest declines of between 1%-3.5%.
You May Also Enjoy
Bank of England Hold’s Interest Rates at 4%
England’s south coast sees highest rent increase in UK
Fewer than 1 in 5 homebuyers find their perfect property
Average homebuyer travels 330 miles to find their ideal property
Why first-time buyers should start the financial conversation early
