Rental yields continue to hold steady throughout the country

22 April 2012 Categories: News

Rental yields continue to hold steady throughout the country

Buy to let mortgage specialists, Paragon, have released the results of their first quarterly rental yield survey of 2012…and the figures remain promising for landlords. The survey, which quizzes over 500 landlords around England, shows that the average rental yield is holding steady in many regions, with the average currently standing at 6.2% – an increase of 0.3% from Q4 of 2011.

The northern regions dominated the top spots with the North West, and particularly areas such as Liverpool, reporting average yields of 6.6%. The North East followed closely with averages of 6.5% and the South West came in third with 6.4%.

Also this week, Mortgages for Business, a rival of Paragon, released their first quarter finding, and understandably the figures were very similar. Mortgages for Business however also looked into the average rental yields for HMOs and found that at 10.7% the average rental yield is at an all-time high, and especially in cities with large populations of university students.

Obviously these figures are very promising, and when they are coupled with the growth in buy to let mortgage product options (442 buy to let mortgage options exist at the time of writing) it seems the private rental market remains one of the top investment opportunities currently available.