We know this has been a challenging year for everyone, and many landlords are re-evaluating their position in the market right now. However, there are many reasons why landlords should remain in the property market.
There is significant demand for rental property, and rental yields are on the rise. At Intercounty, we work closely with landlords and tenants. We know there is significant activity in the local rental market, and the national figures are also positive.
Landlords should pay close attention to rental yield figures
Newly released data from specialist buy-to-let lender, Fleet Mortgages, has revealed that rental yields on residential buy-to-let properties of 6.4% across England are up 0.4% from the 6% achieved in the third quarter of 2019.
The rental market is still thriving
The headline figure in data provided by Fleet Mortgages is that rental yields in England for the third quarter of 2020 stood at 6.4%.
This is an increase of 0.4% on the 6% achieved in the third quarter of 2019.
Some regional highlights include:
The North East of England experienced the biggest rental yield of the quarter, standing at 8.8%
This return was a 2% increase on the North East of England’s third quarter of 2019 return
Only the North West of England and the East Midlands experienced a fall in rental yields, and both of these regions were starting from a strong position
Greater London, the South East of England, the South West of England, East Anglia, West Midlands and Yorkshire & Humberside joined the North East of England in achieving stronger results in the third quarter of 2020
Steve Cox, Distribution Director of Fleet Mortgages, said; “It’s clearly positive to see the majority of regions in England posting increases in rental yields, and those regions which have shown a very slight dip were already at relatively high levels, to begin with. We learnt from the post-Credit Crunch period over a decade ago that rents are not as susceptible to a recession as property prices, with many occupants more willing to opt for the shorter-term financial commitment offered by renting than longer-term property ownership.”
Steve concluded by saying; “Demand for rental property is clearly holding up in most regions and the underlying demographics suggest that property investment will remain a good choice in the years ahead. Within a shorter time-frame, the fact that – in England at least – the stamp duty holiday is available to landlord borrowers has undoubtedly been a factor in the increased interest in property investment purchases, with both new and existing landlords looking at the opportunities available, and seeking to secure the savings that are available from the holiday. Our next iteration of the Barometer will give us more evidence on the robustness of rental yields and whether the potential impacts of COVID-19 on households and living arrangements are playing out as they are perceived to be.”
For lettings sector enquiries in Bishop’s Stortford, please feel free to call us on 01279 504079 or why not email us at firstname.lastname@example.org. With considerable experience in the local market, and free valuation services, we look forward to helping you move.