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The buy-to-let market has had somewhat of a difficult time over the past few years due to changes in government legislation and taxation. Since July this year, however, the number of buy-to-let mortgages being approved has risen considerably and is proving that there is life in the market for those looking to invest. 

With competitive mortgage rates available, especially if a larger deposit has been accrued, anybody who has the desire to become a landlord now has the opportunity to do so. A new report by HomeLet showing that the average rent around the UK has reached a record high of £970 per month demonstrates that the potential to reap rewards through buy-to-let is exceptional. 

HomeLet data shows that rents have increased in every single region of the United Kingdom over the past twelve months, up to 3.5% greater than at the same point in 2018. For those looking to invest, this presents tremendous opportunity to be able to invest locally and see the benefits.

 

Biggest annual increases in average rents

Region

August 2018

August 2019

Annual Change

London

£1,632

£1,689

+3.5%

North West

£717

£741

+3.3%

South West

£826

£852

+3.1%

 

In terms of rental yields, we are also seeing record highs in terms of the average yield that landlords are reaping, with the average now reaching 4.5%, up from last year and the highest in three years. For those looking to maximise their yields, there is a growing trend towards Houses of Multiple Occupancy, or HMOS, as they tend to provide a yield approximately 20% higher than a typical rental property.

Which region provides the best rental yield?

North West       6.20%

Yorkshire & The Humber           5.90%

East Midlands   5.40%

Scotland           5.30%

West Midlands  5.10%

North East        5.10%

South West       4.40%

Wales   4.20%

East of England4.10%

London4.10%

South East        4.00%

National average           4.50%

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