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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%.

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