April 2017 - March sees booming rental market in the East of England
Yields remain strong despite market changes
Yields continued to fall in most regions surveyed, Your Move found. Across all of England and Wales the typical yield was 4.5% in March, having declined on both a monthly basis and year-on-year. In March 2016 the average yield was 5% while last month it stood at 4.6%.
Wales was the only area not to see yields fall in the last 12 months. The average return for landlords in Wales was 4.8%, exactly the same as both last month and a year ago.
Places with higher house prices continue to have the smallest yields – and these are typically in the areas closest to London. In the capital itself the average yield was 3.2% this month, the same. as last month but down on the 3.6% recorded a year ago.
In the South East the typical yield was 3.4%, flat versus last month but lower than the 3.7% seen in March 2016. In the East of England, where rents have risen strongly, yields have fallen from 4.4% to 3.9% in the last 12 months.
Properties in the northernmost regions saw the highest recorded yields. In the North East the typical return was 5.2% while in the North West it was 5% - although both were down on the same point in 2016. These are the only two areas to see yields above the 5% mark this month.