May 2017 - Stable rental market, with growth moving away from the capital
Yields remain strong despite market changes
Landlords and property investors continued to see their yield levels squeezed in April, Your Move found. The average yield across all areas of England and Wales dropped month-on-month, falling to 4.4%.
This compares to the 4.5% recorded in March and is further back from the average yield of 5% recorded in April 2016.
The main reason for this decline has been a particular pressure on the market in the East Midlands. Here the average yield dropped from 4.4% to 4.1% between March and April, the biggest change recorded by the survey.
The East of England was the only other area to see yields drop on a monthly basis, falling from 3.9% to 3.8%.
Compared to April 2016, only one region did not see its yield levels deteriorate. This was Wales where the typical rental property returned 4.8% this month – exactly the same as a year ago.
Once more the north/south divide continued to be apparent with properties located closest to London again seeing the smallest yields. The average property in the capital city returned 3.2% this month, less than anywhere else in the survey.
The South West (3.3% yield) and the South East (3.4%) were close behind.
At the other end of the scale only two regions saw yield levels remain at the 5% mark or higher. They were the North East – where the typical property returned 5.2% - and the North West, where the average landlord saw a yield of 5%. These figures are both down compared to the same point last year.