Buy to Let Mortgage lenders Paragon have revealed that rental yields are higher in Wales than any other part of the country.

Wales, an area that we have largely invested in ourselves averaged yields of 7.7% during the second quarter of the year with Yorkshire & Humber (including Hull, which is another area that Property Secrets have focused on in recent times) achieving positive yields of 7.6%.

The monthly yields in London at 5.7% are the worst in the country.

In terms of property type, HMO (Houses in Multiple Occupation) generates the highest yields at 7.8% with flats (where the landlord owns full block) at 7.3% and bungalows 7.2%.

By tenant type, students lead the way with benefit claimants at 7.4% with retired tenants and LHA claimants averaging 7.3% & 7.2% respectively.

Size matters

Landlords with large portfolios are much more likely to generate higher yields with those having 20 or more properties averaging 7.7% compared to those with only one property - who average 4.9% pcm.

Paragon Director of Sales Julian Rance quoted "These figures demonstrate that landlords are achieving healthy yields on their portfolios. Strong levels of tenant demand are filtering through to higher rental income, which is creating upward pressure on yields."

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