The North West is the UK’s buy-to-let hotspot with rental yields reaching 4.41% on an average rent of £790, according to new research.
Regeneration projects in the Northern Powerhouse towns and cities and the London exodus to the north – accelerated by Covid-19 – have driven the rise, while Yorkshire and the Humber have also benefited from investment in the region, delivering yields of 4.33% on an average rent of £697.
Findings from SevenCapital and Zoopla show that Scotland has recorded healthy yields of 4.11% on an average rent of £687 – significantly higher than London where yields are just 2.9% and the average rent is £1,583.
The Midlands and the north of England are expected to show the strongest price growth during 2022, mainly driven by their greater capacity for growth, while house prices are also set to continue rising across the UK – up 9% by the end of this year.
Toks Adebiyi (pictured), founder and CEO of tenant finding platform Clooper, says rental yields can change from postcode to postcode, so it’s important that landlords conduct thorough research into potential investment outside their current property portfolio locations, to ensure they achieve maximum yields.
“In Manchester, Leeds and Birmingham, certain postcodes are hitting yields of between 6-12% as property prices are considerably lower than the South East,” says Adebiyi. “Currently, the average UK rental yield is sitting at 3.63%, so anything over that amount can be considered a high rental yield area.”
He adds: “Landlords considering expanding their portfolio into 2022 have the opportunity to acquire highly profitable properties, despite looming interest rate rises and potential issues with finance.”
Clooper is LandlordZONE’s official ‘Tenant Sourcing Partners’.