A property investment platform has analysed rental yields to see the best returning areas for buy to let investors.
Sourced Franchise analysed UK house prices, rent values, and yields in June 2022 and June 2023 to see how a difficult economic environment has impacted buy-to-let returns.
The data shows that the current average yield in the UK is 5.2 per cent, marking a 0.4 per cent increase since this time last year.
The strongest yields, which indicate the best places to invest right now, are currently available in Scotland (5.9 per cent) while other regional hotspots include Northern Ireland (5.7 per cent), the North West (5.5) Yorkshire & Humber (4.9) and London (4.7 per cent).
Scotland also leads the way in terms of annual yield increases, rising by 0.64 per cent.
With 0.49 per cent growth, London is also performing well, as are Wales (0.35 per cent), the West Midlands (0.34) North West (0.34) and Yorkshire & Humber (also 0.34 per cent).
The South East is the only region to have recorded negative numbers, with the current yield of 4.0 per cent marking an annual drop of 0.02 per cent.
Sourced Franchise director Chris Kirkwood comments: “Economic turmoil can present great opportunities for investors who are willing to take calculated risks, and the UK’s current environment is the perfect example.
“Yes, the economy is struggling and rising mortgage rates are causing widespread concern on the housing market, but with house prices likely to fall further before they climb again, and rent values climbing at pace, buy-to-let landlords who can afford to take on current mortgage deals would be wise to pounce when the right properties come to market in the right locations.”
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😂 😂 😂 😂... Pounce when the right properties come to market?!! You're having a laugh... The UK is the last place I'd be investing any more of my hard earned lollie in rental property.. Especially Scotland where there's a ban on evictions and a 3% annual cap on rent increases....this landlord is selling up. 👋 Byeeee
Hmmm - I’m in north east too and get 6%. Yield too.
I have always said there are five things that keep a landlord awake at night.
Rent arrears
Void periods
maintenance
Tax
legislations
If I can put my money in a bank and get five or six percent interest, why the hell should I go through theses hassles? I started at the back of Section 21 in 1990. Now is time to say its good bye from me. With the capital gains allowance virtually gone, lets get out before labour gets in.
Well done Sourced Franchise to review ALL of the UK. Scotland, Northern Ireland, Wales and England.
As said most elegantly above …. Sell Sell Sell 💰💰💰 this country has had it for investment.
Sourced Franchise seem very biased. They wish LL to keep properties and keep investing in Scotland, where the rent increases are capped. Elsewhere there are numerous increasing issues that SF have not highlighted and swept under the carpets. Long term LLs can see through this useless article. New LLs will also question the motives behind the SF. Get out of BTL investment or business, especially you have no fixed rate mortgages.
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