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Buy-to-let remains an attractive asset class but the best yields are up north

supply of rental properties

According to data from BM Solutions, the buy-to-let brand of Lloyds Banking Group, in H2 2016, buy-to-let returns outperformed many major asset classes with an average gross yield of 5.3%.

Northern England, where rents stand at an average of £513 per month, offered the best annual returns, with landlords achieving a yield of 7% in H2 2016.

In contrast, London saw the lowest rental yields (4.4%), followed by the South East and the South West (both 4.9%).

Rents in Greater London were the highest in the country at £1,591 per month, more than double the UK average.

Commenting, Phil Rickards, Head of BM Solutions, said: “Rental yields remain strong, still offering investors high real returns.

“Typically buy-to-let investors in northern areas tend to benefit from lower property values providing higher yields, whereas southern regions have the lowest yields given the higher housing costs.

“Demand for rental properties remains high and returns have remained strong in the past six months despite the challenges that have faced the market during that time.”

Inspired recently launched its debut development in the north, Fabrick, a collection of 184 one and two bedroom apartments in Greater Manchester suburb Cheadle Hulme. In addition to Inspired’s typically high spec, residents will also benefit from a rooftop terrace and club lounge. With projected gross rental yields of 6.5%, apartments are available to purchase off-plan from £129,500. For more information or to enquire, call the sales team on 020 8688 6552.

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