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.