Data from ARLA has shown that rental returns on houses in the North-West have been consistently hovering at around 6% or above, and are currently delivering the highest rental returns in England. The story is much the same for rental returns on flats, with returns of 5.8% and 5.2% in the North-West and North-East respectively.
London properties, on the other hand, are not performing so well. Rental returns on houses in central London have been in decline for the past six months, dropping from 4% to 3.5%. Flats in the same area offer an average return of 4.1%. Move With Us say that the capital is one of the worst places in the country for buy-to-let investment.
Ian Potter, managing director of ARLA, said, “Our data clearly shows that landlords around the UK must choose their rental property wisely to ensure they receive the returns they expect. I would always recommend using an experienced ARLA agent when letting a property as they will be able to give the most up-to-date insight into the local rental market.
“It may be that rental returns in a particular area come as a surprise to those not directly involved in the local market. As void periods have stabilised, landlords may have an easier job of forecasting returns once an indicative figure has been received. However, some untenanted time should always be factored in to any landlord’s investment calculations.”
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