The total average rental yield for England and Wales shows an annual increase again, up 1% % to 7.6% on the same quarter in 2023. This is also up 0.5% on the first quarter 2024 figure of 7.1%.
This is according to the latest Fleet Mortgages Buy-to-Let Rental Barometer covering Q2 2024 rental yields across England and Wales
Fleet said strengthening yields right across every region of England and Wales was evident with all showing year-on-year yield increases and the North East achieving a double-digit yield in the second quarter of this year.
The barometer does show some movement amongst the regions though with Yorkshire and Humberside losing top spot, falling to fifth place with an average yield of 7.6%, down from 8.5% last quarter.
This means the North East moves top, in front of the North West, while both Wales and the West Midlands jump ahead of Yorkshire and Humberside.
There remains an ongoing North/South divide with regions in the North topping the table. However, Greater London, the South East, East Anglia, and the South West have not just seen yearly average yields increase but also quarter-on-quarter.
When it comes to average monthly rent per property, the highest is within Greater London at £2,024, followed by East Anglia at £1,594; properties located in the North-East region typically see the most affordable rents, with monthly average rents of £768.
Rental yield highs
Fleet said that while rental yields were likely to dip off these highs eventually, they would be sustained until the private rental sector could benefit from a greater number of homes to meet key demographic issues, particularly the population increase but also the increased difficulties many people face when seeking to buy a home.
Fleet Mortgages chief commercial officer Steve Cox commented: “While there are few surprises within this iteration of the Rental Barometer, it’s clear the trends we have all been seeing in the wider buy-to-let and private rental sector continue to strengthen right across the board, fuelled by a continued supply/demand imbalance.
“Hence we have every single region within which Fleet lends in England and Wales showing a year-on-year increase in average rental yields.”
He added: “The requirements for an ongoing strong yield are clearly not going away, particularly in a higher interest-rate environment in which many refinancing landlord borrowers are having to pay far more for their monthly mortgages than they did two/three/five-years ago.”
