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New research has produced a series of league tables to identify where in Britain the best rental yields can be found. The study, by peer-to-peer funder Sourced Capital, has revealed that buy to let rental yields on average have remained largely flat, up just 0.1 per cent year on year. But this masks significant regional variations. The North East has seen an annual increase of 0.12 per cent and on a local level, Corby has seen an uplift of 0.7 per cent on an annual basis. Elsewhere in the country Charnwood, Newcastle and Exeter have also seen positive growth with a jump of 0.5 per cent or more. Harlow in Essex and the Orkney Islands have enjoyed a 0.4 per cent increase, along with Ealing which enjoys the largest increase of all London boroughs. While Glasgow has seen a very marginal decline on an annual basis, the current average rental yield of 7.87 per cent remains the strongest in the UK buy-to-let sector. Inverclyde, West Dunbartonshire, Midlothian and East Ayrshire also remain some of the most profitable pockets, while outside of Scotland, Burnley, Belfast and Blackpool also rank well. Sourced Capital managing director Stephen Moss says: “Turning a profit in the buy to let sector remains a tough ask with a number of government changes denting profitability and yields remaining largely flat. “With COVID-19 presenting additional hurdles such as rental arrears and longer void periods, many are now turning to alternative options such as the peer to peer sector for a safer, more hands-off investment. “However, that’s not to say that a buy-to-let property won’t make a great investment should you place your money in the right pockets of the market. Buy to let returns are based on fine margins and so an annual increase of 0.7 per cent isn’t as insignificant as it may seem.”