The average rental yield across England has dropped by -0.25% since last December
Newly released analysis and data from lettings management platform, Howsy, has revealed which parts of the buy-to-let market have gifted landlords an increase in rental yields since last Christmas, in what has otherwise been a tough year for the rental sector.
Since last December, the average rental yield across England has dropped by -0.25%, now at 3.86%.
All regions have seen a decline, with London the worst hit. The capital has seen the average rental yield fall from 4.25% last December to 3.975 currently; a drop of -0.28%.
The South West and Yorkshire and the Humber have seen rental yields decline by -0.25%, with the North West (-0.24%) and the East of England (-0.20%) also seeing some of the largest drops since last December.
However, there are some areas where landlords are seeing their bricks and mortar investment bring more than a lump of coal this festive season.
In Leicestershire, the average rental yield has climbed +0.10% to 3.45% since last December. Buckinghamshire has also seen an uplift for landlords, with yields up 0.07% since last year. Tyne and Wear is the only other county to have seen the average rental yield climb in the last year, although the increase is marginal at 0.01%.
The East Riding of Yorkshire is the only other county to have avoided a decline with the average rental yield remaining flat year on year.
Calum Brannan, Founder and CEO of Howsy, commented: Covid has caused a great deal of turbulence across the rental sector this year and as a result, landlords have had to lower their income expectations to account for lower tenant demand in many areas of the market.
While the declines in available rental yields may seem marginal, they can make a real difference when it comes to the profitability of a buy-to-let investment that has already suffered at the hands of a string of government changes to tax and stamp duty legislation, Brannan said.
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