The latest Fleet Mortgages’ Buy-to-Let Rental Barometer shows both an annual and quarterly increase in rental yields across England and Wales.
According to the report, yields were 6.5% for the first quarter of 2023, up from 6% a year ago and 6.4% in the last quarter of 2022.
Every region registered both an annual and quarterly increase in rental yield, except the North West and the South West, which saw quarterly drops of 0.1% and 0.2%, respectively.
Average rental income up at £1,345 per month, from £1,256 in the last quarter of 2022. This also represents an annual increase of £135 compared with the first quarter of last year.
In the North East, while yields remained above 8%, rents decreased to £660 from £681 last quarter, with similar trends in both the East Midlands and the South East.
Steve Cox, chief commercial officer at Fleet Mortgages, commented: “Those regions which have topped the ‘charts’ for some time, continue to perform well but it is also positive to see all other regions showing stronger yields and again it is also not surprising to see rental incomes – on the whole – also on the increase.
“Overall, the market continues to predominantly be the preserve of portfolio landlords, particularly as those with only one or two properties struggle to stay profitable given the rise in mortgage costs.
“Purchase activity has slipped slightly but is still over a third of our business and this is coming from portfolio players continuing to purchase residential property with a long-term investment horizon. We do not see that tailing off any time soon.”
