England has seen rental yields decline by an average of 0.13% since the tenant fee ban came into force in June 2019.
Lettings management platform Howsy has looked at which parts of the buy-to-let market have seen the biggest uplifts in rental yields since the tenant fee ban came into force.
Howsy looked at the average rental yield by area based on house price and rent since the ban and how this compared to rental yields over the same time period prior to the ban.
London has seen the largest decline, with rental yields -0.18% lower since June of last year, although the South West has seen a slight uplift (0.06%), while the South East region has seen yields remain static.
Newcastle-under-Lyme has seen the most positive movement since the ban, with the average rental yield now at 5.01%, an increase of 0.49%.
Exeter has also seen a notable improvement with yields increasing by 0.42%, whilst areas such as Westminster, Oxford and Chiltern have all seen yields increase at a rate of 0.30% or more.
Calum Brannan, founder and chief executive of Howsy, said: “It was widely believed that the ban on tenant fees would be the final nail in the buy-to-let coffin for many landlords but while top line profitability seems to have stuttered slightly, the sector is far from collapsing.
“In fact, the resilient nature and diverse landscape of the UK rental sector means there are plenty of pockets that have actually seen yields improve and while this growth may only be marginal at present, it is a very positive sign given the short time scale.
“As with all investments, the buy-to-let sector is all about knowing the market and picking the right options and if you do, bricks and mortar remain a very sound investment.”