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Rental yields fall 0.1% in May

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06/06/2013
Landlords saw their rental yields decrease in May as house prices rose faster than rents, Countrywide
Rental yields fall 0.1% in May

Average yields dropped 0.1% last month with a decline in all regions apart from the east of England and Scotland.

Countrywide group commercial director Nick Dunning said: “Despite the decrease in yields in May, rental yields remain strong and are providing attractive returns for buy-to-let investors compared to other types of investment.

“The fall in average monthly rents for four plus bedroom properties reflects consumers decisions to source cheaper properties to rent to try to keep living costs down, thus demand is higher for smaller rather than larger rental properties. This is particularly true for first-time buyers who are saving for a deposit to buy their first home.”

In most regions, rent arrears remained the same or fell year-on-year. However, in Scotland they increased by 4.6%.

Wales saw the greatest jump in average monthly rent, followed by Scotland, the North and the South West.

The highest average rent was in central London at £2,340 per month, followed by £1,100 in greater London and £1,049 in the South East. Scotland had the lowest average monthly rent at £617.

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