UK: Even a global pandemic can’t rattle rental yields as market stays strong
By James Lockett From PropergandaPR
Research by nationwide buy-to-let specialist, Sequre Property Investment, has revealed which regions of the UK buy-to-let market have best weathered the rental market uncertainty posed by the pandemic and currently present the best yields for UK landlords.
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. But as we emerge from the other side, Sequre’s research shows that the average rental yield in Great Britain has remained defiant at 4.2%.
No less than seven regions are also home to an above average, post-pandemic rental yield.
The North West continues to top the table with the highest current rental yield at 5.4%, remaining the best region for a buy-to-let investment that Britain has to offer.
Scotland is also home to some of the highest yields at present and the only other region to breach the five percent threshold (5.1%).
Yorkshire and the Humber (4.8%), the North East (4.8%) and Wales (4.7%) also rank within the top five best performing reasons, while the West Midlands (4.3%) and London (4.3%) also come in above the national average.
Sales Director at Sequre Property Investment, Daniel Jackson, commented:
“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.”
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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Notes:
● Sequre Property Investment is a leading nationwide Build to Let specialist in the UK.
● Founded in 2013, the company has sold over 3,000 buy to let properties worth over £300,000,000.
● Sequre’s focus is the provision of high-income producing, turnkey, discounted buy-to-let property investments in a number of major UK cities.
● The company has experienced tremendous annual growth, reporting consistently high increases in turnover year-on-year.
● Daniel is the Sales Director at Sequre and has over 20 years’ experience in the property sector mainly in the North as well as 3 years working on the BBC’s relocation of staff from London to Media City.
● He has been with Sequre since they started in 2013 and has worked with some of the country’s largest housing providers sourcing deals for investors.
● Find out more at https://sequre.co.uk/about-us/