Newly released figures from buy-to-let specialist lender, Fleet mortgages, have revealed that average rental yields on residential buy-to-let properties are sitting at 5.3% across England, a slight dip of 0.4% against figures achieved in Q2 2019.
The regional snapshot covers all the areas in which Fleet lends in England and highlights the rental yield changes that have occurred in each region. In this iteration, the yearly comparison is between Q2 2020 and Q2 2019.
According to the data, the North West of England posted the top rental yield regional figure for the quarter, up 0.6% year-on-year to 7.6%, while the East Midlands posted the biggest year-on-year fall of 2.1% down to a 4.4% yield from 6.5% last year.
Whereas Fleet Mortgages’ first iteration of the Buy-to-Let Rental Barometer – covering Q4 2019, compared to Q4 2018 – showed only one region – the North West – with a drop in rental yield over the period, this time there have been over 1% falls in the North, Yorkshire & Humberside, and East Midlands, with smaller falls posted in the South West, East Anglia and Greater London.
The three regions to post positive rental yields over the period are the North West, West Midlands and the South East.
Fleet said that the overall data represented softer rental yields across England but with little signs of immediate falls.
It did, however, suggest caution was required in terms of predicting future rental yield levels as valuers had only been valuing physical properties for just over five weeks – since the easing of the lockdown restrictions in England – and Government intervention in the form of furlough support, and the current moratorium on evictions, may mean the full extent of the impact of COVID-19 pandemic on rental demand and yield is not yet visible.
The Q2 figures do not include Wales, as different lockdown rules apply and no meaningful data is available to provide a robust rental yield figure.