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June 2017 - Seven UK regions see rents rise on annual basis

Yields hold steady

  • The recent decline in yields came to an end in May, with every
    region in this survey offering landlords the same return as a month
    ago.

  • Your Move found the average yield across all areas of England and
    Wales was 4.4% in May, exactly the same as in April.

  • Northern areas continue to boast the highest returns with the North
    East once again leading the pack. Landlords saw an average of
    5.2% on their investment in this part of the country, just ahead of
    the North West where the average yield was 5%.

  • These were the only two regions to deliver yields of 5% of above.

  • At the other end of the scale, London continued to offer the
    smallest percentage return. Landlords in the capital city saw a
    3.2% return in the year to May 2017, smaller than the South West
    (3.3%) and the South East (3.4%).

  • However, all regions have seen a decline in yields in the past 12
    months. In May 2016 the average England and Wales yield was
    5%, well above today’s figure.

  • Landlords in the East of England have been particularly squeezed
    with the average yield falling to 3.8% from its previous level of
    4.4%. Wales was the only area surveyed to see rental yields
    remain intact in the past 12 months. Here the average property
    returned 4.8% in May 2017, exactly the same as a year ago.

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