A growing number of buy-to-let investors are heading north for better returns, according to Your Move.
The property firm reports that the North East and the North West are particularly attractive at the moment, where a combination of low house prices and large student populations results in decent rental levels, so good yields and fewer void periods for landlords.
The average investor in the North East enjoyed a rental return of 5% in the year to November 2018 while in the North West this figure was 4.8%, Your Move’s rental tracker shows.
“Properties in the North appear to offer high percentage returns to property investors and, as a result, they are attracting interest even more,” said Martyn Alderton, national lettings director at Your Move.
“This strong appetite to buy has been accompanied by a rise in demand for rental properties, since the North is attracting many young professionals and families with its good transport links and job prospects,” he added.
Landlords in eight of the 10 surveyed regions saw yields remain firm between October and November, Your Move found.
The East of England and the East Midlands both saw a marginal decline in yields, with the former dropping from 3.7% to 3.6% while in the latter typical yield fell from 4.3% to 4.2%.
London continued to have the smallest percentage returns, recording 3.2% during the month. Across all of England and Wales the average yield was 4.3%, the same as a month ago
Alderto continued: “As the London market continues to gently slow down, other regions are coming to the fore and proving attractive to investors.
“In the South West there was also good news and rental prices increased faster than anywhere else. The region boasts both the upand-coming city of Bristol and some of the most picturesque parts of the world in Devon and Cornwall.”
Overall the average rent across England and Wales stood at an average of £864 per calendar month (pcm) in November, the data from Your Move shows.
The figures also reveal that the proportion of tenancies in arrears dropped from 8.6% in October to 8.1% in November.