The East Midlands and the North West reported the highest average rental returns in the UK.
The latest figures released by the National Landlords Association (NLA) shows that whilst there has been a slight decrease in the proportion of landlords who are optimistic about their ability to rely on a steady rental yield, actual rental returns have remained mostly stable across the UK.
According to NLA, rental yields have fluctuated around the 6% mark over the past few years, with the poll’s results signalling that 49% of landlords still remain optimistic about the country’s rental market profitability.
Regionally, those owning property in the East Midlands and North West achieved the greatest rental yields in July, with the averages for these locations standing at 6.9% and 6.4% respectively.
Properties in Scotland and West Midlands also generated some of the highest rental returns, as both areas saw an average rental yield of 6.3%.
Conversely, landlords owning property in both central and outer London experienced the lowest levels of profitability seen across the UK, as yields stood at 5.3% and 5%.
The news comes as HomeLet latest rental index shows an increase in rents across the UK in July, rising by an average 1.1% year-on-year, with Northern Ireland leading the growth and seeing rental cost rise by 5.7% annually.