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.

Rental Yields Near 7% in Newcastle, Portsmouth, and Manchester

New research by The Letting Partnership has identified UK locations where rental yields are approaching 7%. The average rental yield across the country is currently 5.9%, based on an average house price of £293,262 and an average monthly rent of £1,446.

Top Performing Rental Markets

According to the research, Newcastle upon Tyne offers the highest average rental yield at 6.9%. This is based on an average property price of £208,589 and a monthly rent of £1,206. Portsmouth and Manchester follow closely, each with average yields of 6.5%.

Other strong markets include Southampton and the London borough of Tower Hamlets, both with estimated yields of 6.4%. Bristol, Blackpool, and Nottingham also feature among England’s strongest rental markets, each with average yields of 6.3%. Lincoln and Kingston upon Hull are reported at 6.2%.

The figures are based on data from Gov.uk and the Office for National Statistics.

Rent Arrears Trends

The report also references separate research from Pegasus Insight on behalf of Paragon Bank, which found that 26% of landlords reported rent arrears during the three months from April of this year. This is a decrease from 30% in the previous three months.

These findings provide letting agents and inventory clerks with up-to-date insights on rental yields and arrears trends across the UK.