The buy-to-let markets where rental yields have lifted since the tenant fee ban

February 12, 2020

The latest research by leading lettings management platform, Howsy, has looked at which pockets of the buy-to-let market have seen the biggest uplifts in rental yields since the tenant fee ban came into force as part of the Tenant Fees Act 2019 back in June of last year.

Howsy looked at the average rental yield by area based on house price and rent since the ban came into force and how this compared to rental yields over the same time period prior to the ban to see which areas of England have enjoyed the biggest uplift.

Many predicted the ban on tenant fees would dampen the financial return available to the nation’s landlords and on a top level this seems to be the case, albeit only marginally. Across England rental yields since the ban have averaged 4.08%, -0.13% lower than the same time period previous to its implementation.

London has seen the largest decline, with rental yields -0.18% lower since June of last year, although the South West has seen a slight uplift (0.06%), while the South East region has seen yields remain static.

But not everywhere has seen such stagnant movement and when looking regionally there are green shoots of positivity to be found for buy-to-let investors.

Newcastle-under-Lyme has seen the most positive movement since the ban, with the average rental yield now at 5.01%, an increase of 0.49%. Exeter has also seen a notable improvement with yields increasing by 0.42%, while Westminster (0.37%), Oxford (0.34%), South Oxfordshire (0.33%), Chiltern (0.33%), the City of London (0.33%) and Plymouth (0.30%) have all seen yields increase at a rate of 0.30% or more.

Within the boundaries of the capital, Camden (0.13%), Bexley (0.10%) and Sutton (0.09%) have also seen some of the most positive changes in the rental yields available.

Founder and CEO of Howsy, Calum Brannan, commented:

“It was widely believed that the ban on tenant fees would be the final nail in the buy-to-let coffin for many landlords but while top line profitability seems to have stuttered slightly, the sector is far from collapsing.

In fact, the resilient nature and diverse landscape of the UK rental sector means there are plenty of pockets that have actually seen yields improve and while this growth may only be marginal at present, it is a very positive sign given the short time scale.

As with all investments, the buy-to-let sector is all about knowing the market and picking the right options and if you do, bricks and mortar remain a very sound investment.”

Regional change in rental yield change since the tenant fee ban
Location
Rental Yield – Before Tenant Act
Rental Yield – After Tenant Act
Change in rental yield (pre and post Tenant Act)
ENGLAND
4.21%
4.08%
-0.13%
SOUTH WEST
3.71%
3.77%
0.06%
SOUTH EAST
3.68%
3.68%
0.00%
WEST MIDLANDS
4.24%
4.23%
-0.01%
EAST OF ENGLAND
3.58%
3.56%
-0.02%
EAST MIDLANDS
3.90%
3.85%
-0.06%
NORTH WEST
4.51%
4.45%
-0.07%
YORKSHIRE AND THE HUMBER
4.54%
4.46%
-0.08%
LONDON
4.44%
4.26%
-0.18%
NORTH EAST
5.13%
4.88%
-0.25%
Areas with the highest rental yield change in England since the tenant fee ban
Location
Rental Yield – Before Tenant Act
Rental Yield – After Tenant Act
Change in rental yield (pre and post Tenant Act)
Newcastle-under-Lyme
4.52%
5.01%
0.49%
Exeter
4.57%
4.99%
0.42%
Westminster
3.52%
3.89%
0.37%
Oxford
4.03%
4.37%
0.34%
South Oxfordshire
3.18%
3.52%
0.33%
Chiltern
2.79%
3.12%
0.33%
City of London
3.51%
3.84%
0.33%
Plymouth
3.85%
4.15%
0.30%
Doncaster
4.43%
4.65%
0.22%
Norwich
4.57%
4.77%
0.20%
Bristol, City of
4.62%
4.82%
0.20%
West Oxfordshire
3.64%
3.84%
0.20%
Runnymede
3.51%
3.71%
0.20%
Bournemouth
4.01%
4.20%
0.19%
Forest Heath
5.41%
5.60%
0.19%
Areas with the highest rental yield change in London since the tenant fee ban
Location
Rental Yield – Before Tenant Act
Rental Yield – After Tenant Act
Change in rental yield (pre and post Tenant Act)
Westminster
3.52%
3.89%
0.37%
City of London
3.51%
3.84%
0.33%
Camden
3.48%
3.60%
0.13%
Bexley
3.84%
3.94%
0.10%
Sutton
3.64%
3.73%
0.09%
Havering
3.75%
3.83%
0.08%
Croydon
3.66%
3.72%
0.06%
Hillingdon
3.71%
3.74%
0.03%
Newham
4.68%
4.70%
0.02%
Harrow
3.73%
3.74%
0.01%
Hammersmith and Fulham
3.46%
3.47%
0.01%
Haringey
3.36%
3.36%
0.00%
Wandsworth
3.80%
3.80%
0.00%
Waltham Forest
3.65%
3.63%
-0.02%
Enfield
4.03%
4.00%
-0.03%

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

More than a third of homes undergo price reduction

The latest research from GetAgent.co.uk has revealed that more than a third (34.4%) of homes sold subject to contract (SSTC) across Britain’s major cities have undergone an asking price reduction, with this figure climbing to more than half in Bournemouth, raising questions over whether sellers, and their agents, are pricing their properties realistically when first…
Read More →
Breaking News

‘Explosion’ in e-signature use at Land Registry spells progress for homebuying reform

The number of e-signatures used at Land Registry has exploded in the latest quarter — jumping more than ten times in just three months to 643, Novus Strategy can reveal. Qualified Electronic Signatures (QES) are a central plank of the revolution unfolding in homebuying because they reduce friction and save time. It’s a combination of…
Read More →
Letting Agent Talk

The Flats Above the Shop Problem

Why residential property hidden inside commercial ownership keeps causing trouble By Adam Hills, Client Services Director, LRG Living Markets Somewhere in many commercial property portfolios sits a small collection of front doors that was never really part of the plan. Many large and small retailers inherit residential property portfolios by default as part of mixed-use…
Read More →
Breaking News

Breaking Property News 2/11/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   April 2027: The date Landlords become data companies   From 6 April 2027 some landlords pay 4% more tax – but a bigger burden is the extra governmental red tape Thought leadership by Olivier Jauniaux Founder of NestLink There was a moment in the 2026 Budget speech…
Read More →
Estate Agent Talk

Buying Alone? What Solo Buyers Need to Know Before Making an Offer on a House

Figures show that solo buyers accounted for 36.9% of Barclays’ mortgage completions in June 2026, as more people chose to step onto the property ladder without a partner beside them. Choosing independence over waiting for a joint purchase has doubled over the last 50+ years, with solo first-time buyers doubling from 15% before 1980 to…
Read More →
Estate Agent Talk

How to Make a New-Build Living Room Feel Less Like a Show Home

An empty new-build living room can be surprisingly difficult to furnish. The walls are freshly painted, the sockets are in place, and there is nothing to remove before decorating begins. Yet once the sofa arrives, the room can still feel unsettled: too bare in some places, awkwardly crowded in others. The answer rarely involves buying…
Read More →