When it comes to buy-to-let investment, the North of England has been outperforming the South of England in various metrics. This includes rental yields, and Paragon Bank’s research cements this trend further.
Northern regions occupy the top of the table for average gross rental yields in this survey. The North East (7%), Yorkshire and the Humber (6.6%), and the North West (6.3%) all show high potential yields for landlords.
Central London (5.7%) and Wales (5.6%) showed modest returns, and Outer London came in dead last with a 5.2% average yield. According to Natwest, although these regions had the lowest rental yields in this study, anything over 5% could be considered a ‘good’ rental yield, suggesting that overall yields are currently high in the UK. However, with potentially much higher yields in the North, London real estate investment has lost some of its draws in recent years.