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North West Rental Yields Rise to 7.9% in Q1 2024

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    New Study Further Highlights Divide Between North & South Yields

    Buy-to-let investors regularly keep up to date with rental yields across the country. This is a good indicator of whether a property investment is worth your time and money, highlighting the best places to invest in property. Many investors prefer to look at rental yields as opposed to capital growth expectations, as this typically indicates how much profit you’ll make each month, helping keep an eye on short-term investment goals.

    Understanding rental yields will help you identify properties that appeal to tenants and provide the greatest return on your investment.

    Now, a new analysis shines a light on which regions offer the best yields on average.

    What do these results say about UK property investment? Read on for more information.

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      Which Regions Provide the Best Rental Yields in the UK?

      Fleet Mortgages, a lender specialising in buy-to-let properties, has just released its latest Buy-to-Let Rental Barometer for Q1 2024, which covers rental yields across England and Wales.

      The report examines rental yield changes in each region where Fleet lends, comparing Q1 2024 to Q1 2023.

      Overall, the average rental yield for England and Wales has increased by 0.4% from Q1 2023, reaching 7.1%. This is also a 0.2% increase from 6.9% in Q4 2023.

      With the exception of the North East, every region has seen yearly yield increases. Despite a 0.4% decrease, the North East still holds the second position with an average rental yield of 8.4%.

      The data reveals a clear North/South divide, with the top regions being Yorkshire & Humberside, North East, and North West. Wales, previously at the top, now ranks fifth, with notable increases in the West Midlands, East Anglia, and Greater London.

      The North West’s rental yield rise to 7.9% aligns with the latest Savills cross-sector forecasts, which stated the North West buy-to-let market would see significant returns in 2024, making it one of the best buy-to-let areas in the UK.

      All regions, except the North East, have shown yearly increases in rental yields, attributed to limited supply and high tenancy demand driving up rents, though at a slower pace over the past year.

      Discover More: Is investing in property a good idea? Read our guide on buy-to-let in the UK for more information.

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      What Did Fleet Mortgages Make of the Yield Data?

      Chief Commercial Officer at Fleet Mortgages, Steve Cox, had the following to say: “In a sense, this iteration of our Rental Barometer returns to the status quo, with the northern regions once again making up the top three on the table, after Wales had briefly headed the list for the last quarter of 2023.

      “It’s positive to see virtually all regions within which Fleet lends in England and Wales showing a positive year-on-year increase in rental yield, with Yorkshire & Humberside showing a significant 1.3% increase, which means it now tops the table with a very strong 8.5%.

      “Indeed, the table itself mirrors the geography of England and Wales, with the lower rental yields for the Southern regions, which you might expect given, on average, the greater capital values of properties ‘down South’. What continues to be apparent is the disconnect between supply and demand in the private rental sector, and with significant increases in population numbers, the continued difficulty in purchasing a home, and a lack of action on this Government’s part to improve housing supply, then we’re likely to see ongoing and strong yield throughout the rest of 2024.

      For more buy-to-let insights, see our area guides on North West locations, including:

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      Author

      Dale Barham

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      Dale is a property news and onsite content writer at RWinvest.

      Landlord News, Liverpool Investment, Manchester Investment, Market & Investment Trends, UK