North East has best buy-to-let yields

Landlords in the North East are making the best returns of any area in England and Wales, Your Move’s Buy-to-Let index has revealed.

North East has best buy-to-let yields

Overall yields are falling in England and Wales as they dropped to 4.4% in April, down from 4.5% in March and 5% in April 2016.

Your Move attributes the main reason for this decline as being particular pressure on the market in the East Midlands. Here the average yield dropped from 4.4% to 4.1% between March and April, the biggest change recorded by the survey.

The East of England was the only other area to see yields drop on a monthly basis, falling from 3.9% to 3.8%.

Compared to April 2016, only one region did not see its yield levels deteriorate. This was Wales where the typical rental property returned 4.8% this month – exactly the same as a year ago.

Once more the north/south divide continued to be apparent with properties located closest to London again seeing the smallest yields. The average property in the capital city returned 3.2% this month, less than anywhere else in the survey.

The South West (3.3% yield) and the South East (3.4%) were close behind.

At the other end of the scale only two regions saw yield levels remain at the 5% mark or higher. They were the North East – where the typical property returned 5.2% – and the North West, where the average landlord saw a yield of 5%.

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