Indicative gross yields remain attractive in the rental market. Based on an analysis of apartments sold and rented in 2023, the indicative gross yield is 6.7%. This is up from 5.3% in 2021.
Yields are currently strongest in the North West (8.5%) and have risen across all regions of England and Wales compared to 2021. 66% of landlords are planning on keeping their lettings portfolio the same in the next few years, and 13% plan to increase.
The top reasons for increasing the portfolio are to build an investment business (26%), to be a pension (22%) and that it is the safest place to invest (17%). Rental growth is forecast to outpace the sales market over 2024, with a forecast rise of 5%. Source: #Dataloft Rental Market Analytics, Land Registry, based on £sqft of apartments sold/rented in England and Wales, Property Academy Landlord Survey 2023, Zoopla
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