Buy to Let index

September 2016 - Student check-ins drive up rents in England and Wales

Yields reverse recent trend

  • The average gross rental yield for properties in England and Wales increased in August, reflecting increased rental income for landlords across the two nations.

  • The typical return during August was 4.7%. This is above both the 4.4% recorded in June and 4.5% seen in July. However, it remains below the 5.1% witnessed in August 2015.

  • On a regional basis, the North East continues to be home to the highest yields in this survey. Properties in this area typically returned 5.6% to landlords in August. This level is up on the 5.5% rate from July and also higher than the same point last year (5.0%).

  • While house prices in the North East are typically lower than the national average, relatively high rent levels mean landlords see a better return here than anywhere else.
  • Other areas with above average yields include the North West (5.1%) and Wales (5%), Your Move found.

  • Ot the other end of the scale London landlords saw the smallest percentage return on their investment. Properties in the capital returned a yield of 3.5% in August, higher than the 3.2% recorded in July but still lower than the rest of England and Wales.