Yields remain lucrative in the current rental market

Based on an analysis of apartments sold and rented over the past 12 months, the indicative gross yield is 5.8%, up from 5.1% 3 years before. The gross yields have risen across all regions of England & Wales, compared to 3 years ago.

From a survey of over 1,000 landlords by Dataloft with Homelet, 73% of landlords were planning for their portfolios to stay the same size over the next year, with 1 in 10 looking to expand.

Nearly 50% see their portfolio as their long-term pension, 25% more consider property the best place to invest and 17% hope to increase their monthly income.

At the time of writing, the Bank of England base rate is 1.25%, with the average interest rate on a 1-year fixed rate ISA in the region of 2.5%. Rightmove predict that rentail values will rise by 8% over the course of 2022, and rental growth is set to overtake sales growth.

(Source: Dataloft, DRMA, Land Registy, DLUHC, Homelet, Rightmove, Bank of England, Moneyfacts)