Newcastle upon Tyne has emerged as the highest-yielding rental market in England, with average yields reaching 6.9%, according to new research from The Letting Partnership.
The analysis, based on data from Gov.uk and the Office for National Statistics, calculated the national average rental yield at 5.9%, derived from an average house price of £293,262 and monthly rent of £1,446.
Regional performance
In Newcastle, investors benefit from an average property price of £208,589 combined with monthly rents of £1,206, producing the country’s strongest yields. Portsmouth and Manchester followed closely at 6.5% each, while Southampton and Tower Hamlets in London both recorded yields of 6.4%.
Bristol, Blackpool and Nottingham each achieved yields of 6.3%, with Lincoln and Kingston upon Hull at 6.2%. The data reflects ongoing regional variations in property market performance across the country.
Chris Mason, Chief Operating Officer of The Letting Partnership, said: “Yield is understandably front of mind for landlords and, as the figures show, there are still parts of the country where investors can achieve very healthy returns.”
Market context
The yield data follows separate research earlier this month from Pegasus Insight on behalf of Paragon Bank, which found that 26% of landlords reported rent arrears during the three months from April, down from 30% in the previous quarter, marking the lowest level on record.
The research highlights the geographical disparity in rental returns, with northern cities and regional centres offering substantially higher yields than the national average, driven by lower property prices relative to rental income.
