Rental yields across England and Wales saw a 0.7% rise in Q3 compared to Q2, according to new data from Fleet Mortgages.
Q3 saw total rental yields on residential buy-to-let (BTL) properties across England & Wales climbed to 6.3%.
Fleet also reported a slight fall in rental yields across the UK compared to last year, but highlighted that in 2020 this covered the first full three-month period out of lockdown where yields spiked in certain parts of the country.
The BTL specialist lender’s latest data compared Q3 2021 and Q3 2020 and covers all the areas in which it lends in England and Wales, highlighting the rental yield changes that have occurred in each region.
Seven out of 10 regions, all except East Anglia, South West and South East – which has the same rental yield figure as Q2 – have seen an increase on the Q2 2021 figures. Fleet suggested that its data shows that rental yields in many of the regions of the UK improving throughout 2021 and that there are only minor yearly drops across most of the regions analysed.
Fleet chief commercial officer, Steve Cox, commented: “When you compare the two most recent quarters in 2021 we can see a steady improvement in yields throughout the year, driven by incredibly strong tenant demand, and other UK housing market fundamentals such as a lack of supply for both tenants and owner-occupiers.
“Supply remains the real driving force here and it’s simple economics to point out that with tenant demand as it is, and given the supply of PRS properties, yield performance benefits greatly.”
“We continue to see excellent performance levels for rental yield across the North of England, and it’s unsurprising that landlords are looking at their options here. However, a little further south and we are also seeing better performing properties in the Midlands and in Wales.
Cox suggested the PRS and the BTL market “continues to retain its allure for landlords”, with many having used the stamp duty holiday to add to portfolios.
He added: “This is aided by the strength of finance options available to landlords at present and the array of competitively-priced mortgages whatever their needs and circumstances. The UK is not going to change its love affair with property anytime soon and this bodes extremely well for advisers and their clients.”
Latest News
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories