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Landlords See an Average Rental Return of Nearly £20,000 over the Last Year

The average landlord in England and Wales benefitted from returns of nearly £20,000, based on recently published figures.

The average landlord in England and Wales benefitted from returns of nearly £20,000, based on recently published figures.

Your Move and Reeds Rains’ newest monthly index on the buy-to-let market shows that the average landlord saw an average rental return of 10.7% in the year to April. When taking into account both income and capital growth, and excluding maintenance costs, the average return for a UK landlord stands at £19,538 over a 12-month period.


This demonstrates a slight decrease on the 11.4% average annual return recorded in March, but is a significant increase on the 9.8% average return witnessed a year earlier in April 2015.


The average return made by landlords was calculated using capital gain and rental income, with £10,815 or 55.4% of the return made by landlords coming from increasing property values, whilst rental returns made up the remaining 44.6% - a total of £8,723 - over the past year.


Rental returns are proving resilient in the face of the recent growth in property prices, with rental rates continuing to rise in spite of property values also increasing. In spite of the continued performance of rental returns, the rise in property prices has had a minor effect on the gross yield of a typical UK property, excluding factors such as void periods, dropping 0.2% year-on-year to 4.9% in April 2016 compared to 5.1% in April 2015.


When observing average rental return within each region for April 2016, the North West saw the highest average with 6.8% - compared to 6.9% from the previous year. Followed by the North West, the Yorkshire & Humber region ranks as the second highest with the average yield in April set at 6.5%.


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