Rents in the North are better than the South for UK landlords

Landlord Expert
By Landlord Expert April 19, 2012 14:33

Figures from Paragon, the buy-to-let lender, show that landlords in the North West are making 6.6pc annual return on their properties, compared with 5.9pc in Central London and 5.7pc in the suburbs.

 

Landlords in Scotland get the least for their investments, with yields of 5.5pc. Those achieving the highest average yield were in the North West, generating a yield of 6.6pc – an increase from 5.9pc in the fourth quarter of 2011. Gross Rental Yield is the annual income from renting out the property as a percentage of the property's price.

 

The Northern regions dominated the top spots, with landlords in the North East achieving an average yield of 6.5pc. Following in third place was the South West with a yield of 6.4pc and the East of England with 6.3pc. The overall average yield achieved by landlords in Q1 was 6.2pc, an increase on Q4 where the average yield was 5.9pc.

 

John Heron, Director of Paragon Mortgages, said: "The rental yield figure is important for landlords as it gives a good indication of how well a property, and in a wider sense, a portfolio is performing.

 

"We have seen another interesting shift in the regions taking the top spots, with a more distinct North/South divide in Q1 with the North outperforming their Southern counterparts.

 

Recent figures from BM Solutions, which also provides mortgages for buy-to-let landlords, showed that average rents in London are more than twice the national average. However, because these landlords have bigger mortgages to service, they make less profit than their Northern counterparts overall.

 

The average monthly rent in the capital is 69pc higher than UK average of £716, and 41pc above that in the South East – the next highest region. The lowest average rents are in Wales the North and Yorkshire and the Humber, BM Solutions said.


 

Landlord Expert
By Landlord Expert April 19, 2012 14:33

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