Figures from Fleet Mortgages show that rental yields in England and Wales reached 7.4% in the last three months of last year, up 0.6% on the year.
This is also 0.2% higher than the previous quarter, according to the latest rent barometer from buy-to-let experts.
“Rental yields have almost universally remained positive, with only the West Midlands region of England and Wales recording an annual decrease,” the survey said.
“However, all three regions – Greater London, the North East and the West Midlands – saw yields fall compared to the previous quarter.”
It added that the broader national picture showed that “rental yields have remained broadly unchanged compared with a year ago”.
The North East continues to lead with average rental yields of 9.3%, with Yorkshire and Humberside rising to second place at 8.6%, ahead of the North West at 8.3%, which dropped to third place.
Rental yields in the West Midlands were 6.6%, down 0.5% on the same period last year.
The research points out that the highest average monthly rent per property is in Greater London at £2,056, followed by the South West at £1,734.
Properties located in the North East generally contain the most affordable rents, with an average monthly rent of £706.
Fleet Mortgages chief commercial officer Steve Cox said: “Even with the Budget deciding to increase the stamp duty surcharge for landlord purchasers, the buy-to-let market is certainly more positive now than it was this time last year.
“Our rental barometer reflects optimism for the final quarter of 2024, with average rental yields generally continuing to improve, albeit at a slightly slower pace, and looking at Fleet’s data on average monthly rents, average interest rates, average rents, loans Size, rental security and number of home purchase applications.
Cox added: “Of course many landlords are waiting for the Budget before making a decision, but even if stamp duty increases, at least they now have certainty about the future and can plan accordingly and, as mentioned above, their financial position Well, this will allow more landlords to take action and join the portfolio where appropriate.
