Rental Yields Concern Landlords
Based upon some research, it would appear that rental yields are concerning a number of landlords here in the UK. Many landlords are dependent upon the rental income to cover the running costs of the investment property such as meeting the mortgage repayments, paying for maintenance to the property, paying landlord insurance premiums and paying for the services of a letting agent to manage the property.
Information has been produced by the National Landlords Association (NLA) that makes for interesting reading. The statistics reveal that the percentage of landlords who are happy to rely on a regular rental yield has reduced by 15% between Q2 of 2015 and Q2 of 2017. We are sure that you will agree that is a significant drop.
This is interesting when you consider that the average rental yield has hovered in the region of 6% per annum for quite a number of years.
Some research has been undertaken into the different average rental yields that are achieved in various regions around the UK. For instance, rental properties in East Midlands produced the greatest yield with an average of 6.9%. The North West of England was in second place with an average rental yield of 6.4%. In third place were both the West Midlands and Scotland with an average rental yield of 6.3%. In last position is Outer London with an average rental yield of 5.00%. This is closely followed by Central London with a rental yield averaging 5.3%.
When you consider there is a wide difference between the average rental yield in various parts of the country i.e. a difference of 1.6% between the East Midlands and Outer London then potential and existing landlords may feel it necessary to take such data into account, as well as other factors, when deciding where to purchase an investment property to let out. You can read the full article on the website of the National Landlords Association.