Buy to Let index

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.


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