North West home to the best rental yields

Despite the challenges caused by the pandemic landlords in the North West claimed a rental yield of 5.4% in the past year, research from Sequre shows.

House prices are still relatively low in the North West, at £185,171, while annual house price stood at 8.1% in the region as of July 2021.

Scotland was the only other region to break the 5% threshold, at 5.1%.

The worst areas are the South East (3.9%) and the East (3.9%), while London stands in the middle at 4.3%.

Daniel Jackson, sales director at Sequre Property Investment, said: “The property industry has shown impressive resilience throughout the pandemic, but even the most optimistic of landlords were probably expecting profitability to take a dive during such uncertain times.

”Yet yields have refused to show any notable levels of decline and the buy-to-let sector remains a very strong investment option at present. The reason is that, even though house prices have gone up by an average of 10%, rent values have gone up by more still, 11%, to negate any negative hit on yields.

“One thing is for sure, Northern Britain remains the best, most rewarding place for buy-to-let landlords and investors to build their portfolios and not even a global pandemic can do anything to change that.”

Working from home requirements, reductions in tenant incomes and a ban on eviction have all contributed to a tough time for the buy-to-let sector.

Across the whole of Great Britain yields average at 4.2%.

Table shows British regions ranked from highest latest yield to lowest, listed alongside average house and rent prices from Jan 2020 and the latest available 2021 figures
Location AveHP – July 2021 (latest) Ave Rent pm – Sept 2021 Rental yield – latest
North West £185,171 £830 5.4%
Scotland £177,166 £755 5.1%
Yorkshire & Humber £180,324 £725 4.8%
North East £144,935 £578 4.8%
Wales £187,960 £734 4.7%
West Midlands £220,759 £797 4.3%
London £494,673 £1,752 4.3%
South West £277,178 £971 4.2%
East Midlands £214,169 £735 4.1%
East £312,076 £1,021 3.9%
South East £354,278 £1,139 3.9%
England £270,973 £950 4.2%
Great Britain £258,464 £912 4.2%
Sources – UK HPI, Homelet average rent

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