16 Feb

Buy-to-let yields 'vary around the country'

Buy-to-let yields 'vary around the country'

There are opportunities for investors to see significant returns on a buy-to-let investment, provided they pick a property in the right part of the country, new research has found.

A survey carried out by Savills has discovered that the highest buy-to-let yields are available on property to rent in Nottingham, where landlords can expect to receive an average of a little more than six per cent.

Other markets currently performing well in terms of income yields include Tyne and Wear, Merseyside and Greater Manchester.

Lucien Cook, director of research at the property company, explained that this is because purchase costs in these areas are generally lower and there is significant demand for rental accommodation.

However, Mr Cook cautioned against opting for higher yields in the short-term over long-term capital growth.

"Because of house price growth over the last decade, the returns from residential investment have increasingly become a capital play and despite the recent fall in prices, this is unlikely to change," he stated.

According to the most recent house price index to be released by Communities and Local Government, average property values in the north-west of the country increased by almost £2,000 in December to reach £152,233, compared with the previous month.ADNFCR-1222-ID-19619147-ADNFCR

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