The North East, North West, and Yorkshire & Humber are emerging as juicy targets for landlords hunting for profitable investments.
According to the latest analysis by industry organisations, those regions have the highest rental yields in England, making them a top choice for Buy-to-Let investors.
The North East takes the top spot with an average yield of 8.13%, Wales at 8.07% and the North West at 7.84%. Yorkshire & Humber also stands out with a yield of 7.54%, well above the UK average of 7.17%.
Affordable Homes, Attractive Yields
What’s behind those returns? Well, affordability is a key factor. The Office for National Statistics reports that the North East is the most affordable region in England: many areas have house prices less than five times the average income. That makes it easier for landlords to buy cheaper properties while still earning strong rental income.
On the other hand, London has dismal rental yields, at 5.56%. This is the lowest in the country and these low yields are because property prices there are roughly 12 times the average yearly salary.
Region | Avg. Rental Income | Avg. Property Value | Rental Yield |
|---|---|---|---|
North East | £15,160 | £186,520 | 8.13% |
Wales | £18,398 | £228,068 | 8.07% |
North West | £17,814 | £227,209 | 7.84% |
Yorkshire & Humber | £16,641 | £220,667 | 7.54% |
Greater London | £41,105 | £739,166 | 5.56% |
What’s the Trend?
Experts point to a trend over the previous decade. More landlords are choosing the North over the South. They explain that affordable property prices in the North, paired with strong rental demand, make it an attractive option.
Though rental demand is strong across the UK, the North stands out with its cocktail of lower property costs and higher rental returns.
Conclusion
For landlords aiming to boost their earnings, the North East, North West, and Yorkshire & Humber are golden opportunities.
With affordable property prices, the regions let investors buy homes without overspending while enjoying above-average rental returns.
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