The North of England was the best region for rental yields in the final quarter of last year, as demand continued to outpace supply. According to data provided by Fleet Mortgages’ new buy-to-let index, rent as a percentage of property value rose by 2.6% in Q4 last year, rising to an average of 9.1% across the region. This is up from 6.5% in Q4 of 2018.
In the south, Greater London yields edged up by 0.3% from 4.8% to 5.1%, whilst in the South West, yields held fast at 5.5%.
Across the country, average yields in England and Wales rose 0.7%. There was only one region to see a drop in rental yields compared to last year, and that was the North West, where they took a slight dip from 7.5% to 7.4%.
Steve Cox, distribution director at Fleet Mortgages, said: “Clearly, the market has shifted over the past 18-24 months as landlords get to grips with the increased costs that come with private rental sector activity, in particular the phased-in changes to mortgage interest tax relief for individual landlords.”