Buy-to-let yields shrink year-on-year

Ryan Bembridge

August 31, 2017

Property investors are making lower yields than a year ago across every region of England and Wales, Your Move’s buy-to-let index has found.

Typical yields now stand at 4.9%, with the best being in the North East, (5.2%) North West (5.0%) and Wales (4.7%) and the worst in London, (3.2%) the South West (3.3%) and the South East (3.4%).

This is despite UK rents rising year-on-year – as they increased by 4.3% in Wales, 3.6% in the South East and 3.3% in the East of England.

Your Move blamed government measures on shrinking stock. These include the 3% stamp duty surcharge introduced on April 2016 and the gradual reduction of mortgage tax relief.

Richard Waind, director at Your Move, said: “The private rental sector… could still be seen as an attractive opportunity for investors, with the North East and North West in particular seeing strong growth.

“Although buy-to-let investors are preparing for the new PRA changes coming into effect in September, it’s clear that there are still people who believe that, property remains a viable investment option.”

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