New analysis of a decade of Land Registry and ONS data reveals that rents for flats and maisonettes have grown faster than purchase prices in every region of England and Wales, driving a significant expansion in gross yields across the country.
The North West saw the strongest flat price growth of any region (+20.6%), while the North West recorded the sharpest rent increases (+55.2%).
North East now offers the highest gross yield of any region at 6.68%, up from 5.15% a decade ago. The London was the only region where flat prices declined (-6.9%), yet rents there still rose +36.5%.
Brickview, which analysed the data, says that it arguably carries a clear message for two groups.
For prospective homeowners, buying rather than renting looks increasingly compelling despite rising interest rates — not for the spectacular capital gains of earlier generations, but as a practical hedge against rent inflation that shows no sign of abating.
For professional landlords and investors with the right financing in place, rising yields mean flats are arguably more cash-generative today than at any point in the past decade, offering a credible return without relying on capital growth.
This article is taken from Landlord Today