March 2017 - East and South East rents rise as demand outside London rockets
Yields squeezed despite rent rises
While most areas of England and Wales saw rents increase, yield levels have continued to trend downwards over the last year.
Across England and Wales the typical yield was 4.1% in February, Your Move found. This is down on the 4.2% recorded a month ago and well below the 4.9% yield seen in February 2016.
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, down from 3.6% a year ago but flat month-on-month.
In the South East the typical yield was 3.4%, down from 3.7% in February 2016, while in the East of England yields were down from 4.4% to 3.9% in the same period.
Landlords with properties in the South West also saw returns below 4%. In this region yields also dropped from 3.7% to 3.4% during the last 12 months.
At the other end of the scale, properties located in the North East enjoyed the biggest yields. In this region the average return was 5.3% this month, slightly down compared to last year.
The North West also saw high yields this month – with the typical property investment yielding 5%.