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Rental yields edge higher for Buy to Let landlords

Aaron Strutt Image
New research from BM Solutions shows that Buy to Let investors have seen average gross rental yields edge up to 6.2% in June 2012, compared to 6.0% 12 months earlier. The increase has been primarily driven by a 5.3% growth in average rental income across Britain over the last year. Regionally, rental yields vary with the highest returns in the North (7.0%) and the lowest in London (4.8%). The North is followed by the North West, Yorkshire and the Humber (both 6.5%) and Wales (6.2%). The lowest yields are all in southern England, with East Anglia, South East and the South West all recording returns of just over 5%. Nationally, the average monthly rent increased from £697 per month in June 2011 to £734 pm in June 2012; a rise of 5.3%. However, there has been significant variation in rental growth between regions over the last year. The biggest increase came in London with average monthly rents rising by 10.5% (or £122 pm) in the year to June 2012; the capital is followed by the South East (6.2%) and Wales (5.8%). In contrast, rents in the South West have barely changed since June 2011 registering growth of just 0.2%. In the North average monthly rents fell marginally (-0.4%). Not surprisingly tenants in London pay the highest average rent, which at £1,287 pm is 75% above the national average of £734. The South East has the second highest average rent (£885 pm), followed by the South West (£706). August 17, 2012
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sunday times telegraph financial times bbc news the express the times
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