Phone Us

Growing Demand Boosting Rental Returns in the North

Landlords earned average returns of 4.3% across England & Wales as rents increased 1.8% in year to November

Residential Lettings Landlords Rental Growth 2018

The northern regions continue to attract a strong appetite from property investors, according to the latest Rental Tracker Index.

In their final report in 2018, Your Move revealed the cost of renting increased by 1.8% in November compared with the same month in 2017.

On an annual basis, the South West had the highest level of rental growth of 4.3%, whilst rents in the next best performing region, the East Midlands, were up by 1.9%, followed by the South East with an increase of 1.4%.

The weakest performing rental market in the year to November was the East of England, which saw average rents fall by 1.1% over this period, although Your Move notes it is still the third most expensive region for rents in England.

For the third consecutive month, the West Midlands had the largest rate of rental growth between months, matched by Wales with a 0.4% increase in November, compared to an average of 0.1% for all of England & Wales.

Rental returns across England & Wales remained stable at 4.3%, with notable regional variations. Yields reached 5% in the North East, the highest rate for any region since May, closely followed by the North West which offered an average return of 4.8%.

However, yields slipped slightly in the East of England and the East Midlands by 0.1% to 3.6% and 4.2% respectively, whilst London-based investors earned the lowest returns at an average of 3.2%.

Commenting on the findings, Your Move’s National Lettings Director Martyn Alderton said: “Properties in the North appear to offer high percentage returns to property investors and, as a result, they are attracting interest even more.

“This strong appetite to buy has been accompanied by a rise in demand for rental properties, since the North is attracting many young professionals and families with its good transport links and job prospects.”

Demand for rental properties has been particularly prominent among older renters, with research by Intus Lettings finding the number of people aged 45 to 54 who rent has grown by a third since 2016.

Cookies on our website:
This website uses cookies.
I'm OK with this Cookie Settings ?