Northern properties delivering stronger rental yields

Rents across England and Wales have not moved in the last 12 months, according to the Your Move Rental Tracker.

The typical rent is now £860 per calendar month, the same as last March and 0.1% down month-on-month.

Your Move said this figure masks regional differences, as regions such as the East of England have seen prices fall while the South West is growing at 3.6% annually.

On a non-seasonally adjusted basis, the average rent across England & Wales was £820 this month, down 1% compared with March 2018.

Investor landlords in southern regions are now looking north for higher returns, as properties in northern areas continue to outstrip rival regions, Your Move found.

In the North East the typical property returned 5% while in the North West that figure was 4.8%.

This contrasts with an average yield of just 3.2% in London and 3.3% in both the South East and South West.

Wales was the only area where yields dropped betweenFebruary and March, falling from 4.6% to 4.5% month-on-month. The average yield across all of England and Wales was 4.3% -the same as in February but down from the 4.4% recorded a year ago.

Martyn Alderton, national lettings director at Your Move, said: “Yields continue to perform strongly, with just one region offering lower returns this month than in February.

“We continue to see landlords in the south of England looking further afield for their next rental opportunity, as northern properties deliver stronger yields.

“The growth of the urban rental market has created yield hotspots for private landlords in northern cities like Manchester and Liverpool. Universities in these major cities are attracting students from across the country.”

“Young professionals are also increasingly relocating to the North.

The investment in infrastructure and culture, for example the relocation of the BBC and ITV to Manchester, has undoubtedly boosted the desirability of the city among this group.”

Exit mobile version