November 2016 - Rents in England and Wales hit second highest peak ever recorded by Your Move
Yield levels remain strong
Your Move found that the average gross rental yield for properties in England and Wales continued to hold firm in October, despite falling average rents.
The typical return during October was 4.7%, exactly the same as in the past two months. However, it is down compared to the 5.1% recorded in October 2015.
As in recent months, the North East was home to the highest yields in England and Wales. Properties in this region typically returned 5.3% during October, exactly the same as both the previous month and the same point a year ago.
Elsewhere, property investors in the North West and Wales both saw higher yields than the national average. In the North West a typical property returned 5.1% - flat month-on-month – while homes in Wales saw a yield of 5%, up from 4.9% in September.
Wales was the only area to boast higher yields than the previous month. Eight of the other nine regions were flat compared to September, while in the South West yields fell slightly to 3.5%.
The lowest yields this month continued to be found in areas with the highest house prices. London landlords saw a return of 3.3%, well below the national average. Despite high rents in this area, the large initial investment means returns are more limited compared to northern regions.
The South East and South West both saw average yields of 3.5% in October, the next smallest in England and Wales.