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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.”

Regional change in rental yield change since the tenant fee ban

Location

Rental Yield - Before Tenant Act

Rental Yield - After Tenant Act

Change in rental yield (pre and post Tenant Act)

ENGLAND

4.21%

4.08%

-0.13%

SOUTH WEST

3.71%

3.77%

0.06%

SOUTH EAST

3.68%

3.68%

0.00%

WEST MIDLANDS

4.24%

4.23%

-0.01%

EAST OF ENGLAND

3.58%

3.56%

-0.02%

EAST MIDLANDS

3.90%

3.85%

-0.06%

NORTH WEST

4.51%

4.45%

-0.07%

YORKSHIRE AND THE HUMBER

4.54%

4.46%

-0.08%

LONDON

4.44%

4.26%

-0.18%

NORTH EAST

5.13%

4.88%

-0.25%

Areas with the highest rental yield change in England since the tenant fee ban

Location

Rental Yield - Before Tenant Act

Rental Yield - After Tenant Act

Change in rental yield (pre and post Tenant Act)

Newcastle-under-Lyme

4.52%

5.01%

0.49%

Exeter

4.57%

4.99%

0.42%

Westminster

3.52%

3.89%

0.37%

Oxford

4.03%

4.37%

0.34%

South Oxfordshire

3.18%

3.52%

0.33%

Chiltern

2.79%

3.12%

0.33%

City of London

3.51%

3.84%

0.33%

Plymouth

3.85%

4.15%

0.30%

Doncaster

4.43%

4.65%

0.22%

Norwich

4.57%

4.77%

0.20%

Bristol, City of

4.62%

4.82%

0.20%

West Oxfordshire

3.64%

3.84%

0.20%

Runnymede

3.51%

3.71%

0.20%

Bournemouth

4.01%

4.20%

0.19%

Forest Heath

5.41%

5.60%

0.19%

Areas with the highest rental yield change in London since the tenant fee ban

Location

Rental Yield - Before Tenant Act

Rental Yield - After Tenant Act

Change in rental yield (pre and post Tenant Act)

Westminster

3.52%

3.89%

0.37%

City of London

3.51%

3.84%

0.33%

Camden

3.48%

3.60%

0.13%

Bexley

3.84%

3.94%

0.10%

Sutton

3.64%

3.73%

0.09%

Havering

3.75%

3.83%

0.08%

Croydon

3.66%

3.72%

0.06%

Hillingdon

3.71%

3.74%

0.03%

Newham

4.68%

4.70%

0.02%

Harrow

3.73%

3.74%

0.01%

Hammersmith and Fulham

3.46%

3.47%

0.01%

Haringey

3.36%

3.36%

0.00%

Wandsworth

3.80%

3.80%

0.00%

Waltham Forest

3.65%

3.63%

-0.02%

Enfield

4.03%

4.00%

-0.03%

Poll: Have you seen rental yields improve since the introduction of the ban on tenant fees?

PLACE YOUR VOTE BELOW

  • icon

    Rents are climbing here in Norwich, and no shortage of good tenants to chose from, the dross element are taking up the shop door ways increasingly .

    John Cart

    Harsh, but unfortunately correct......the LA's can deal with the nere'do wells, there's lots of good tenants to chose from. We did viewings over three days for a one bed flat here in London. Twenty viewers and five want the place. The Gov't were warned this would be the result of their idiots policies...…..and here we have it.

     
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