February 2017 - Rental market has strong start to 2017
Yield levels continue to vary considerably across the regions
Across England and Wales the typical property returned 4.6% during January, slightly down on the 4.7% recorded during the previous month. This figure is also below the 5.1% yield seen in January 2016.
Yields continue to vary from region to region. Areas with lower initial purchase costs generate the largest percentage return. The North East continues to lead the way in this respect with the average property generating a 5.3% yield – the same as last month.
Houses in the North West typically gave landlords a 5% return on investment and those in Wales were also above the national average, recording 4.7% during the month. Yields in the Yorkshire and The Humber area were exactly in line with the national average at 4.6%.
London continues to have the smallest yields as properties in the capital returned 3.2% to investors in January. This is a fraction down on the 3.3% seen in December and reflects the continued high cost of housing stock in the Greater London area.
The South East and the South West had the next lowest yields, with properties in both areas returning 3.4% during the month of January. Both are flat compared to the previous month.