Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Landlords See Rental Yield Decline in Most UK Regions in Q2
Most landlords across the UK experienced a drop in rental yields during the second quarter of the year, according to new figures from Fleet Mortgages. The data comes as many property investors reconsider their future investments following the introduction of the Renters’ Rights Act in May.
Fleet Mortgages’ latest Buy-to-Let Rental Barometer shows that six out of ten regions saw a quarterly decrease in rental yields. Despite this short-term dip, average rental yields across England and Wales rose by 0.3% year-on-year to 7.8%. However, this represents a fall from 8.1% recorded in the first quarter.
The North East continues to lead the regions, with annual rental yields up by 0.5%. Quarter-on-quarter, though, the North East also saw a decrease of 0.6%, bringing its yield to 9.2%. The North West has moved into second place with an average rental yield of 8.8%.
Six regions, including Yorkshire & Humberside, Wales, and both the East and West Midlands, continue to report yields above 8%. Higher-yielding areas in the North and Midlands are outperforming those in the South, while Wales and the South West have seen an annual fall in yields.
Fleet Mortgages reports that professional landlords remain active in the market, with purchase activity increasing and portfolio landlords expanding where opportunities exist. Limited company borrowing remains the preferred route for most investors, according to the lender.
These trends are relevant for letting agents and inventory clerks monitoring regional rental market performance and advising clients on investment decisions.
Source: The Negotiator