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

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

Estate Agent Talk

Essential Garage Storage Solutions for Small Spaces

Maximize your garage space with practical storage ideas that keep your items organized and accessible. If you’re dealing with a smaller garage, smart solutions can make a big difference in keeping your space neat and usable. 1.  Wall-Mounted Storage Wall-mounted storage is an excellent way to save space and keep your garage organized, especially in…
Read More
Home and Living

How to Protect Your Property from Flooding and Water Damage

Flooding and water leaks can cause significant damage to your home or office. However, many issues can be prevented by taking proactive measures to protect your property. In this article, we’ll explain how to minimize risks and prepare for potential water-related threats. 1. Inspect and Maintain Your Plumbing System One of the most common causes…
Read More
Breaking News

ONS House Price Index – November 2024

Headlines Average UK private rents increased by 8.7% in the 12 months to October 2024 (provisional estimate); this is up from 8.4% in the 12 months to September 2024. Average rents increased to £1,348 (8.8%) in England, £766 (7.9%) in Wales, and £976 (6.6%) in Scotland, in the 12 months to October 2024. In Northern…
Read More
Breaking News

Foxtons Lettings Market Index October 2024

Headlines October saw the highest level of new stock entering the market, with an 8% increase from last year, the highest increase in four years October’s demand is marginally lower than last October and decreased 32% from September, as expected during this time of year Following a yearly high of £593 per week this September,…
Read More
Breaking News

Breaking Property News 20/11/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Proptech powered lettings service for BTR developers needing pre-approved, quality tenants at speed gets funding A proptech-driven letting agent has secured close to £500,000 during its first equity investment raise. Property Sense, headquartered in Stockport but operating nationally, secured the half a million pounds in…
Read More
Kerb appeal
Estate Agent Talk

Why November and December are the best and most affordable months to buy

Buyers and sellers looking for the right time to move can consider top reasons from property experts to start the process this November and December. The autumn and winter months may not be the first that come to mind when considering a move, but potential buyers and sellers can be reassured by the experts that…
Read More