Rental yields remain strong in majority of towns and cities

Rental yields remain strong in majority of towns and cities
The stability of both house prices and rents is a positive sign for buy-to-let investors, proving the strength of the UK’s property market

The latest insight from Kuflink, examining average house price and median rent, has found that average yields have remained strong, despite a dip in rents across the UK, in 34 out of the 50 UK towns and cities analysed.

Meanwhile, house price growth has slowed, but prices remain fundamentally strong. Swansea saw the biggest increase in average property prices, of £5,593, followed by Milton Keynes with an increase of £4,689. Although the South of England continues to see stronger house price growth than the North, the gap between the north and south is shortening.

The UK’s Northern Powerhouse has proven best for investment in buy-to-let property. Yields of over 7% (7.08%) can be achieved in Salford, while Leeds and Manchester offer returns of 5.96% and 5.79% respectively. London sits amongst the bottom of the rankings; properties here provide returns of just 3.45%. Chelmsford in Essex provides the weakest returns, of just 2.89%.

House prices in London’s most affluent boroughs continue to rise. House prices rose by £27,073 in Westminster, by £25,307 in Kensington and Chelsea and by £11,445 in Greenwich. Rental yields in Westminster and Greenwich remain strong, propped up by advantageous rents.


Barkingham and Dagenham has proven best for investment; with average house prices falling by £2,730 and rents remaining stable, returns of 5.3% can be achieved here.

Tarlochan Garcha, CEO at Kuflink, commented: “This index shows that savvy investors should look to the regions where strong rents and more affordable house prices make for fruitful investment opportunities. The Northern Powerhouse is leading the way, while London falls by the wayside, as rents fail to keep up with rocketing house prices.

The stability of both house prices and rents is a positive sign for buy-to-let investors, proving the strength of the UK’s property market, which is able to withstand the uncertainty surrounding the UK’s exit from the EU. The following few months will be the true test of the market, as Article 50 negotiations get underway.”

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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