Lettings agency chain Lomond has revealed a list of what it calls “up and coming rental hotspots” with yields having strengthened considerably over the last year as rents have risen and house prices cooled.
The agency says that over the last year, the average monthly rent across England and Wales has increased by 8.2%, far outperforming the 2.2% growth seen in house prices. As a result, the average rental yield has climbed from 4% to 4.2%.
Every region of England and Wales has seen yield growth with London (+0.4%), the South East (+0.3%) and North West (0.3%) seeing the largest change, whilst the North East is home to the strongest overall yield at 4.9%.
At local authority level there are 129 areas of England and Wales where rental prices have grown whilst house prices have softened or not moved .
Here’s the areas to have seen the largest growth of 0.4% or more in rental yield across each region: –
– East Midlands: Nottingham (+0.6%), Ashfield (+0.5%), Broxtowe (+0.4%) Derby (+0.4%) and Erewash (+0.4%).
– East of England: Ipswich (+0.8%), Hertsmere (+0.7%), Watford (+0.7%), Harlow (+0.6%) and Stevenage (+0.6%).
– London: Brent (+1.3%), Hammersmith and Fulham (+1.2%), Westminster (+1.2%), Tower Hamlets (+0.9%) and Haringey (+0.7%).
– North East: Hartlepool (+0.6%).
– North West: Salford (+0.8%), Burnley (+0.7%), Knowsley (+0.5%), Blackburn with Darwen (+0.5%) and Bury (+0.4%).
– South East: Reading (+0.8%), Folkestone and Hythe (+0.8%), Portsmouth (+0.7%), Espwom and Ewell (+0.7%) and Thanet (+0.6%).
– South West: Exeter (+0.4%), Swindon (+0.4%),
– Wales: Merthyr Tydfil (+1.4%), Denbighshire (+0.5%), Cardiff (+0.5%), Gwynedd (+0.4%) and Neath Port Talbot (+0.4%).
– West Midlands: Birmingham (+0.4%), Solihull (+0.5%)
– Yorkshire and the Humber: York (+0.5%)
