Buy To Let Rental Yields Increase Across All Regions of the UK

Buy-to-let specialist lender, Fleet Mortgages, has published the most recent edition of its Buy-to-Let Rental Barometer. This report covers rental yields for Q1 2023 in all regions of England and Wales where Fleet Mortgages provides lending services, and it also highlights changes in rental yields that have occurred in each of these regions. The report's annual comparison is between Q1 2023 and Q1 2022.

‍

Buy To Let Rental Yields Increased 6% Year-on-Year

The recently released data shows that rental yields in England and Wales have experienced both yearly and quarterly growth. The rental yields have risen from 6% a year ago, and 6.4% in the previous quarter of 2022, to 6.5% at present. This is the largest increase on record since the Rental Barometer was first published.

‍

The North East region of England has maintained its leading rental yield figure for the eleventh consecutive quarter, increasing 0.6% from the previous quarter. Meanwhile, Yorkshire and Humberside have moved up to second place with a yield of 7.7%. Wales experienced significant growth, rising 1.1% yearly and 0.6% quarter-on-quarter.

‍

Undersupply of Private Rental Property

Fleet Mortgages attributed the rise in rental yields to the persistent shortage of rental properties, coupled with VERY strong tenant demand from private renters.

‍

Buy To Let Rental Income Average of £1,345 Per Month

The average monthly rental income across regions has risen to £1,345, up from £1,256 in the previous quarter of 2022, resulting in an annual increase of £135 since Q1 of the previous year.

Rental incomes vary from an average of £660 per month in the North East to £2,049 in Greater London. Although rental yields have increased in all regions, Fleet Mortgages has noted that not all areas have experienced a rise in rents. For example, in the North East, while rental yields remained above 8%, rents decreased from £681 in the previous quarter, and similar trends were observed in the East Midlands and the South East.

According to the Barometer, gross rental income has now exceeded £1,000 in seven out of ten regions, compared to five regions a year ago.

‍

Generate Wealth Through Buy To Let Property Investment

Are you interested in generating wealth from capitalising on the undersupply of private rental accommodation through buy-to-let property investment? Click here to speak with one of our property experts today.