Greatest rental yields achieved in Wales, according to lettings survey

The greatest rental yields are being achieved in Wales, a major letting survey has shown.

The study, released by Countrywide, showed that Welsh landlords are achieving a 6.7% return on investment – the highest in the UK.  Following closely behind are the North and the Midlands who are achieving 6.5%.

Flats in Cardiff Bay or Penarth Marina are particularly good investments for landlords, with the report showing the greatest yield increase on one and two bedroom properties. These particular homes have a 1.4% and 1.3% month-on-month growth to £679pcm and £766pcm respectively.

The survey highlighted the average monthly rent in Wales has risen by 2% each month, with an increase from £595 to £608 between March and April.  This is particularly interesting following a report released by Rightmove, showing only 28% of people are saving to buy homes in comparison to 56% in London and East Anglia.

Rightmove’s research detailed that, on average, monthly rent accounts for 36 per cent of tenants’ take-home pay.

While a third said that getting on to the property ladder is their number one priority, nearly a quarter are more concerned with living in a desirable area. Furthermore, around 16 per cent said that their priority is ensuring money for leisure time and another 8 per cent would like to take regular holidays.

Tony Jones, Director of ACJ Properties, said:

“Countrywide’s Monthly Lettings Index provides a really interesting insight into the lettings market in Wales.  The growing average monthly rents demonstrate that demand for rental properties remains high in the country.

“One to two bedroom properties in highly desirable areas such as Penarth and Cardiff Bay are popular with young families and professionals wanting to rent affordable accommodation, whilst being in commutable distance to work and near convenient facilities.

“With people renting for longer in Wales and rental prices being a significant part of their monthly expenditure, it is important for letting agents to provide high-quality and long-term rental properties for tenants, while they save to buy their first homes.”