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TODAY'S OTHER NEWS

North of England tops list for fastest growing buy-to-let yields

The north of England provided the biggest jump in returns for buy-to-let landlords in the final quarter of last year as demand from renters continued to heavily outstrip supply in the region. 

According to data from Fleet Mortgages’ newly launched buy-to-let index, the returns from rent as a percentage of the property value grew 2.6% in the final quarter of last year. 

Landlords with properties in the north of England achieved yields of 9.1% on average in the fourth quarter of 2019, up from 6.5% in Q4 2018.

Those with properties in Greater London saw yields edge up 0.3%, from 4.8%  to 5.1%, while in the South West they remained unchanged at 5.5%.

The North West was the only region to see yields drop, falling from 7.5% to 7.4% on average over the corresponding period. 

Overall yield growth for England and Wales as a whole rose 0.7%, from 5.4% to 6.1%, according to Fleet. 

Steve Cox,  distribution director at Fleet Mortgages, said: “Clearly, the market has shifted over the past 18-24 months as landlords get to grips with the increased costs that come with private rental sector activity, in particular the phased-in changes to mortgage interest tax relief for individual landlords.

“Landlords now tend to look differently at their properties, with many converting single-tenancy properties into multi-tenant ones in order to secure better yields. These higher yields are needed in order meet those growing tax liabilities, but to also offset the increased cost of acquiring tenants and regulation. Examples of these changes include more properties being converted into self-contained flats rather than keeping the property as a larger family home.”

Poll: Do you think the north of England is currently the best place to invest?

PLACE YOUR VOTE BELOW

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    With the Tories gaining votes from the North, it is time for Government to help the North more and enable Northern cities to be re generated! The North has many Cities and Universities but, regeneration should also be decent family homes and 'the promise' of better transport links from Boris Johnson, could also help to improve things further, so yes, I would agree that the North could be very up and coming and so it should! I have just purchased a property up North, the rents and mortgage prices in Brighton are ludicrous, the wages suck, have been the same for years whilst the cost of living and rents etc have increased to such levels, many of us in the South just cannot afford to live here, more expensive than London in parts, without the London wages!!!

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    north have their own mayors--the mayors can regenerate with local funds

  • Paul Barrett

    You DON'T need to go to the godforsaken North from the South.
    There are cheaper parts of the South to go.
    Forget the South coast look more at the SE coastal areas.

    A 2 bed terrace property in crappy Walthamstow is about £415000.
    The same property in Southend is £280000
    Far cheaper!
    Takes about 45 mins to reach Liverpool St compared to 30 odd mins from Walthamstow Central on the Tube.
    So an extra 15 mins travelling time saves £145000.
    No need to go up North.
    Go even further SE to your Margate's etc.
    Still within easy reach of London.
    You need to be within about an hour and 15mins of London.
    That way you have a toe in cheaper property but are within reasonable travel distance to London.
    Therefore satisfying the commuter market.
    To go from Brighton to up North is simply too extreme and not necessary.

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