Yields remain lucrative in the current rental market

10th August 2022

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)