Looking for High Rental Yields? Then Go East…or South…or maybe even to Wales!

14 November 2012 Categories: News

Looking for High Rental Yields? Then Go East…or South…or maybe even to Wales!

The latest rental yield report from research specialist BDRC Continental, indicates that the highest rental yields during the third quarter of the year were to be found not in Central London as expected, but in the East of England, and in particular the university city of Cambridge. Landlords with portfolios in the East reported average rental yields of 7.5%, which is well above the national average of 6.7%.

This doesn’t mean to say that Central London has fallen out of favour though. A recent report from Paragon Mortgages quoted Central London as having an average rental yield of 7.1%, plus the potential to regain the top spot during the last quarter of 2012. Surprisingly,Wales fared well in the report also, with an average yield of 7.3%.

John Heron, managing director of Paragon Mortgages, commented “The regional split is fairly mixed again this quarter with the East of England taking the top spot, which could be reflective of the current level of tenant demand in this area of the country combined with softer house prices in the region. We know from other research that we have carried out, that almost all landlords (91%) think that tenant demand is either stable or growing, and this looks set to continue as we head into the last quarter.”