Landlords in the North achieving the best yields

Landlords in the North achieving the best yields

According to new research by BM Solutions, the buy-to-let brand of Lloyds Banking Group, it is landlords in the North of England that are making the best annual returns.

On average, landlords in Northern England achieved annual yields of 7% in the second half of 2016, with monthly rents coming in at £513.

Other areas that have done particularly well are Northern Ireland at 6.5% and the North West of England at 6.4%. This compares favourably with Greater London, where average yields were only 4.4%.

Head of BM Solutions, Phil Rickards said, “ In the second half of 2016 the market slowed with buy-to-let transactions falling by 41% compared to the same period a year earlier, as tax changes and stamp duty rules have inevitably left an imprint on the market. However, demand for rental properties remains high and returns have remained strong in the past 6 months despite the challenges that have faced the market during that time.”

Phil added, “Rental yields remain strong, still offering investors high real returns. Typically, buy-to-let investors in northern areas tend to benefit from lower property values providing higher yields, whereas southern regions have the lowest yields given the higher housing costs.”

If you’re looking for buy-to-let investment opportunities in the north of the UK, then please get in touch. We’d love to talk to you.