North of England ‘offers better rental yields’
Landlords renting out property in the north of England are seeing better returns than those in London, according to new figures from Paragon.
The buy-to-let lender’s statistics revealed that landlords in the north-west are making an annual return of 6.6 per cent on their properties, compared with 5.9 per cent in central London.
Yields were even worse in the suburbs of the capital, where landlords achieved just 5.7 per cent return .
Northern regions dominated the top spots in terms of average yield, with those in the east of England making 6.3 per cent.
John Heron, director of Paragon Mortgages, said: “The rental yield figure is important for landlords as it gives a good indication of how well a property, and in a wider sense, a portfolio is performing.”
He noted that the first quarter of 2012 saw a shift in the regions taking the top spots in the survey.
Recent figures from BM Solutions, which also provides mortgages for buy-to-let landlords, showed that average rents in London are more than twice the national average.
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