Rising rental yields signal a period of opportunity for property investors, according to new research.
Research from property investment platform, Sourced Franchise, reveals that UK rental yields have seen a marginal increase in the past year.
The latest data shows that the current average yield in the UK is 5.2%, marking a 0.4% increase since this time last year.
The market is always cyclical
Chris Kirkwood, director of Sourced Franchise, says: “Economic turmoil can present great opportunities for investors who are willing to take calculated risks, and the UK’s current environment is the perfect example.
“Yes, the economy is struggling and rising mortgage rates are causing widespread concern on the housing market, but with house prices likely to fall further before they climb again, and rent values climbing at pace, buy-to-let landlords who can afford to take on current mortgage deals would be wise to pounce when the right properties come to market in the right locations.”
He added: “The same theory can be applied to all corners of the property industry, commercial and residential.
“The market is always cyclical and slumps and followed by growth and peaks. It’s moments like this that see great investors zig while everyone else zags, and therein lies the genius.”
Strongest yields are currently in Scotland
The strongest yields are currently Scotland (5.9%), while other regional hotspots include Northern Ireland (5.7%), the North West (5.5%), Yorkshire & Humber (4.9%), and London (4.7%).
Scotland also leads the way in terms of annual yield increases, rising by 0.64%.
With 0.49% growth, London is also performing well, as are Wales (0.35%), the West Midlands (0.34%), North West (0.34%), and Yorkshire & Humber (0.34%).
The South East is the only region to have recorded negative numbers, with the current yield of 4% marking an annual drop of -0.02%.
Come and find out more at the Property Investor Show 6-7 October 2023 at London ExCel. www.propertyinvestor.co.uk
Source – Sourced, Property 118