Rent values are outperforming home prices, which gives landlords higher yields

UNITED KINGDOM: According to a market analysis by debt advisory experts Sirius Property Finance, as UK rent values have outperformed home prices in the previous year, rental yields have risen by as much as 2.5%. (Reported by news source)

The UK rental market has gotten stronger over the past year despite the government's efforts, including the abandoned plan to raise capital gains tax for landlords. Landlords who maintained their resolve in the face of prospective tax increases are now being rewarded with excellent yield growth.

The average rental yield in the UK right now is 4.08%. This is an increase of 0.19% over the prior year. However, Sirius has examined yield data at the postcode level to better understand how well the national market is doing and discovered that some regional values far exceed this UK average.

The Bradford area with the BD1 postcode is now producing the UK's highest rental yields, which currently average a very healthy 11.06%.

Yields now average 10.05% in the LS2 postcode district of Leeds, while they are 9.41% in the M14 postcode district of Manchester.