The latest Fleet Mortgages Buy-to-Let Rental Barometer has revealed that yields across England and Wales have seen an increase both on an annual and quarterly basis. According to the report, rental yields in the first quarter of 2023 were 6.5%, up from 6% a year ago and 6.4% in the last quarter of 2022. Every region registered an increase in rental yield except for the Northwest and the Southwest, which had a quarterly decrease of 0.1% and 0.2%, respectively.
Average rental income for the first quarter of 2023 was £1,345 per month, a rise of £135 compared to the same period of the previous year. In contrast, the Northeast, East Midlands and Southeast saw a drop in rent from the previous quarter, although yields remained above 8%.
Commenting on the report, Steve Cox, Chief Commercial Officer of Fleet Mortgages, said: “The market is still mostly comprised of portfolio landlords, particularly as those with only one or two properties struggle to stay profitable due to the increase in mortgage costs. Although purchase activity has slightly declined, it is still accounting for over a third of our business, coming from portfolio players who are investing in residential property with a long-term outlook. We don't expect that to change anytime soon.”