What areas have enjoyed biggest hike in rental yields since the ban on tenant fees?

Rental yields in the private rented sector have dipped marginally since the introduction of the ban on tenant fees in June of last year, new research shows. 

The latest study by letting management platform, Howsy, shows that across England rental yields since the ban have averaged 4.08%, down 0.13% compared with the same time period previous to its implementation.  

London has seen the largest decline, with rental yields dropping by an average of 0.18% since June of last year. 

But not everywhere has seen such stagnant movement and when looking regionally there are signs of growth.   

According to the study, Newcastle-under-Lyme has seen the most positive movement since the ban, with the average rental yield now at 5.01%, an increase of 0.49%. 

Exeter has also seen a notable improvement with yields increasing by 0.42%, while Westminster (0.37%), Oxford (0.34%), South Oxfordshire (0.33%), Chiltern (0.33%), the City of London (0.33%) and Plymouth (0.30%) have all seen yields increase at a rate of at least 0.3%.

Within the boundaries of London, Camden (0.13%), Bexley (0.10%) and Sutton (0.09%) have also seen some of the most positive changes in the rental yields available.

Calum Brannan, founder of Howsy, said: “It was widely believed that the ban on tenant fees would be the final nail in the buy-to-let coffin for many landlords but while top line profitability seems to have stuttered slightly, the sector is far from collapsing.

“In fact, the resilient nature and diverse landscape of the UK rental sector means there are plenty of pockets that have actually seen yields improve and while this growth may only be marginal at present, it is a very positive sign given the short time scale.

“As with all investments, the buy-to-let sector is all about knowing the market and picking the right options and if you do, bricks and mortar remain a very sound investment.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.