Ignore the ‘naysayers’ – PRS is prospering, says inventory boss
Landlords have benefited from increases in rental yields of up to 0.7% this year according to analysis carried out by Inventory Base, despite significant headwinds.
The average rental yield in England is 5.2%, an increase of 0.05% since the start of the year despite strong headwinds, says Inventory Base’s Siân Hemming-Metcalfe (main image).
At a regional level, it’s landlords in London who are benefiting from the highest yields at 4.9%. London has also recorded the largest increase in yields since the start of the year, which were up by 0.19%.
An analysis of local authority (LA) data shows that some areas of England, though, have seen significantly higher yield growth since January.
The highest yield growth occurred in Brent, London, where the current average yield of 4.6% is a 0.7% increase since the beginning of the year.
Yield growth
And the LA with the highest average yields is Portsmouth, where landlords are now seeing an average yield of 6.2%, which is considerably above the best-performing region (London).
In Burnley, the average yield is 6.1%, followed by Manchester at 6%, the City of Bristol (5.9%), Newcastle-upon-Tyne (5.8%), Southampton, also 5.8%, Tower Hamlets (5.7%), and the City of Nottingham (5.6%).
England’s rental market is thriving.”
Hemming-Metcalfe, who is Operations Director at Inventory Base, comments: “Despite many naysayers, England’s rental market is thriving. Modest house price growth combined with a strong rise in rent values means that landlords across much of the nation have benefited from growing yields since the start of the year.
“However, landlords currently face significant pressures, including high mortgage costs and government intervention such as the abolishment of Section 21. As a result, profit margins in the modern rental sector are thin.”
