Strong appetite for investment in the North as yields rise
Investment in the northern regions of England have enjoyed the highest percentage returns across England and Wales, with average yields much higher than in southern areas.
The North East saw an annual yield of 5% in the year to November, whilst the North West saw 4.8%.
Meanwhile, declines in yield were seen across the East of England and the East Midlands, with the former dropping from 3.7% to 3.6% and the latter falling from 4.3% to 4.2%. London continued to have the smallest percentage returns, recording 3.2% during November.
Your Move’s report found that in eight of the 10 regions surveyed, yields remained firm between October and November. Across all of England and Wales the average yield was 4.3%, the same as a month ago.
Martyn Alderton, National Lettings Director at Your Move, comments:
“Properties in the North appear to offer high percentage returns to property investors and, as a result, they are attracting interest even more.
“This strong appetite to buy has been accompanied by a rise in demand for rental properties, since the North is attracting many young professionals and families with its good transport links and job prospects.
“As the London market continues to gently slow down, other regions are coming to the fore and proving attractive to investors.
“In the South West there was also good news and rental prices increased faster than anywhere else. The region boasts both the up-and-coming city of Bristol and some of the most picturesque parts of the world in Devon and Cornwall.”
Key insights
- Investors in northern regions enjoyed the highest percentage returns, with average yields much higher than in southern areas. The average investor in the North East enjoyed an annual yield of 5% in the year to November while in the North West this figure was 4.8%.
- Landlords in eight of the 10 surveyed regions saw yields remain firm between October and November, Your Move found.
- The East of England and the East Midlands both saw a slight decline in yields. The former dropped from 3.7% to 3.6% while in the latter typical yield fell from 4.3% to 4.2%.
- London continued to have the smallest percentage returns, recording 3.2% during the month. Across all of England and Wales the average yield was 4.3%, the same as a month ago. Regional variations
- Rents in the South West region grew faster than anywhere else in the last 12 months, Your Move found. Rental prices rose by 4.3% in the year to November 2018 and now stand at £701. This is higher than the 1.8% average rise across all of England and Wales.
- This was ahead of the next best performer – the East Midlands – where rents rose by 1.9% to hit an average of £663.
Kindly shared by Your Move
