Rental returns in north-west are highest in England

Rental returns in north-west are highest in England

Rental returns are far higher in the north-west than any other part of England, ARLA has reported.


  • Rental returns in the north-west have been more than 6% over the six months
  • Rental returns in London have been 3.5% during the same period
  • The average cost of a buy-to-let property in London is £1.25 million

The north-west of England offers the highest rental returns in the country, according to recent figures from the Association of Residential Letting Agents (ARLA).

Its Members’ Survey of the Private Rented Sector reported rental returns in the region have remained at 6% or above over the last six months.

Comparatively, rents in London dropped to 3.5% from 4% during this period.

Ian Potter, Managing Director of ARLA, said: “Our data clearly shows that landlords around the UK must choose their rental property wisely to ensure they receive the returns they expect.”

ARLA also revealed the average value of a buy-to-let property in London is £1,251,000, while they are only £173,000 in the Midlands. Therefore, investors will have to spend a lot more money before they make a profit in the capital.

Central London properties also provide typical rental returns of 4.1%, while they are 5.8% in the north-west and 5.2% in the north-east.

Mr Potter went on to recommend landlords use an ARLA agent to find out the latest information in the local rental market so they find the best location according to the cost of the property and the rental returns they are likely to achieve.

This comes after the Bank of England reported recent improvements in the UK housing market, stating that the Help to Buy scheme has boosted the new-build sector, while buy-to-let investors have also been “highly active” over the last few months.

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