Blog Post

Yields remain attractive in rental market

TomS - Head Tom Simper Jul 25, 2022, 09:00 AM
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Indicative gross yields remain attractive in the rental market. Based on an analysis of apartments sold and rented over the past 12 months the indicative gross yield is 5.8%. This is up from 5.1% 3 years ago.

Indicative gross yields have risen across all regions of England and Wales compared to three years ago.

A survey of over 1,000 landlords by Dataloft with Homelet found that the majority (73%) of landlords were planning for their portfolios to stay the same over the next year, 1 in 10 looking to expand.

Nearly half see their portfolio as their long-term pension, a further 25% consider property the best place to invest, and 17% hope to increase their monthly income.

At present the Bank of England base rate is 1.25%, the average interest rate on a 1-year fixed rate ISA in the region of 2.5%. Rightmove predict rental values will rise by 8% over the course of 2022, rental price growth set to outpace sales growth. Source: Dataloft, DRMA, Land Registy, DLUHC, Homelet, Rightmove, Bank of England, Moneyfacts

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