Sheffield one of best places in country to be a landlord with rental income booming
Sheffield is one of the best places in the country to be a landlord with rental income booming.
The estimated rental yield for Sheffield is currently 4.9 percent, putting it above the national average of 4.12 percent, says a survey.
Sheffield landlords can expect an average rent of £600 against an average house price of £147,000, which puts the city in fourth place according to research by InventoryBase into the state of the UK rental market. The figures are from the last 12 months and do not reflect the current property boom which puts the average city house price at £191,000.
Glasgow is top of the table with an average rent of £793 against an average house price of £126,600. Leeds is in fifth with a yield of £725 against an average property price of £178,600
By analysing government data, the research found rental yields have fallen in the last year, most likely a result of house prices reaching record-breaking levels following the property market shutdown.
Warrick Swift, commercial director of InventoryBase, said: “This research confirms the national sentiment that northern cities are still some of the best for buy-to-let investment.
“Though rental yields have been declining, this hasn’t had much of an impact on the appetite for property. Thanks to the stamp duty holiday and other economic factors, people are still battling it out to buy additional properties despite diminishing returns.
“The conclusion of initiatives like the stamp duty holiday having a negative effect on buy-to-let landlords is unlikely but it’s difficult to predict what the future holds for those interested in getting involved in the buy-to-let industry in the coming months.”