Landlord News

Yields Highest in East Midlands

It has been revealed that East Midlands landlords are achieving the highest average yields across the UK.

Paragon Mortgages has carried out research to find that the rental property in the East Midlands generated an average yield of 6.4% during Q4 2011.

In second place was the South East (excluding London) with a yield of 6.1%. This was closely followed by the South West with a yield of 6.0%. These high yields in the south reflect the strong level of demand that has been seen in these areas for rental properties in recent months.

Paragon Mortgages worked alongside independent researchers BDRC Continental in conjunction with the National Landlords Association (NLA) in order to survey over 500 landlords.

Furthermore, the survey also revealed that detached houses are the highest yielding types of property, as detached houses produced an average yield of 6.6%. Close behind were terraced houses and HMOs. These produced respective yields of 6.1% and 6.0%.

The Managing Director of Paragon Mortgages, John Heron, has been quoted saying: “It is interesting to see the shift in the regions that are taking the top spots in the yield table and the fact that the East Midlands took first place from the West Midlands.”

He went on to add: “As we progress into 2012 I suspect we will continue to see changes in yield patterns and how different regions fair against each other, with demand still at a peak I believe landlords will continue to achieve healthy yields in the coming months.”

This is positive news indeed for landlords the country over.