Best Regions For Btl Yields Revealed

AFS Team·20 February 2020·4 min read
Best Regions For Btl Yields Revealed

Best Regions For Btl Yields Revealed

The best regions for delivering the best buy to let yields for landlords have been revealed.

The data from Fleet Mortgages reveals that the biggest jump in returns was for landlords in the north of England.

That's because rental demand from tenants outstripped the supply of homes to rent in the region.

According to their figures, the return from rents as a proportion of the property's value in the final quarter of last year, grew by 2.6%.

This means that landlords with rental homes in the north of England saw yields of 9.1% on average. That's up from 2018's figure of 6.5%.

Rental homes in Greater London

Landlords with rental homes in Greater London saw yields move up slightly by 0.3% to 5.1%. In the South West, yields remain unchanged for landlords at 5.5%.

The only region where yields fell was in the North West, where they dropped from 27.4% from 27.5%.

A director at the mortgage firm, Steve Cox, said: "The market has shifted over the past 24 months as landlords get to grips with increasing costs, and in particular the changes to individual landlords for mortgage interest tax relief.

"Landlords tend to look differently now at properties with many securing better yields by converting a single tenancy property into a multi-tenant one.

"The high yields will be needed to meet growing tax liabilities and offset the increasing cost of regulation and acquiring tenants."

Top 10 cheapest areas for tenant revealed

Meanwhile, the areas with the most affordable homes to rent in the UK have been revealed by researchers.

According to CompareTheMarket.com, the cheapest place to rent is Newcastle upon Tyne.

There, the average monthly rent is £567, which is £50 less than the average of £617 that tenants are paying to live in Leeds, Hull, Sheffield and also in Bradford.

In sixth place of cheapest places to rent is Derby, followed by Nottingham and Northampton. Leicester and Cardiff complete list.

The research is part of the platform's aim to find the best city for young adults to live in and looked at the most populated cities and towns and took into account criteria that are important to young people - that is those aged between 18 and 35 years of age - which includes rent costs.

When the data was analysed, the overall top city for young people to rent in is Edinburgh, followed by Reading, Derby and Manchester.