Fleet Mortgages, a lender specialising in buy-to-let properties, has just released its latest Buy-to-Let Rental Barometer for Q1 2024, which covers rental yields across England and Wales.
The report examines rental yield changes in each region where Fleet lends, comparing Q1 2024 to Q1 2023.
Overall, the average rental yield for England and Wales has increased by 0.4% from Q1 2023, reaching 7.1%. This is also a 0.2% increase from 6.9% in Q4 2023.
With the exception of the North East, every region has seen yearly yield increases. Despite a 0.4% decrease, the North East still holds the second position with an average rental yield of 8.4%.
The data reveals a clear North/South divide, with the top regions being Yorkshire & Humberside, North East, and North West. Wales, previously at the top, now ranks fifth, with notable increases in the West Midlands, East Anglia, and Greater London.
The North West’s rental yield rise to 7.9% aligns with the latest Savills cross-sector forecasts, which stated the North West buy-to-let market would see significant returns in 2024, making it one of the best buy-to-let areas in the UK.
All regions, except the North East, have shown yearly increases in rental yields, attributed to limited supply and high tenancy demand driving up rents, though at a slower pace over the past year.
Discover More: Is investing in property a good idea? Read our guide on buy-to-let in the UK for more information.
