Northern buy-to-let landlords getting the best returns

Ryan Bembridge

April 3, 2017

Buy-to-let landlords in Northern England are making the best annual returns despite the low cost of renting, BM Solutions research has found.

In the North landlords made an annual yield of 7.0% in the second half of 2016 despite monthly rents of just £513.

Other strong areas were Northern Ireland (6.5%) and the North West (6.4%), while returns were worst in Greater London (4.4%).

Phil Rickards, head of BM Solutions, said: “Rental yields remain strong, still offering investors high real returns.

“Typically buy-to-let investors in northern areas tend to benefit from lower property values providing higher yields, whereas southern regions have the lowest yields given the higher housing costs.

“In the second half of 2016 the market slowed with buy-to-let transactions falling by 41% compared to the same period a year earlier, as tax changes and stamp duty rules have inevitably left an imprint on the market.

“However, demand for rental properties remains high and returns have remained strong in the past six months despite the challenges that have faced the market during that time.”

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