West Midlands offers highest rental yields
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Rental properties in the West Midlands generate the highest yields in the UK, according to research commissioned by Paragon.
In the West Midlands, rental properties generate an average yield of 7.35%, beating the next highest region outer London at 7.32% and the South-West at 7.07%.
Paragon says the West Midlands is currently undergoing a renaissance, with the redevelopment of Birmingham city centre and a number of businesses creating jobs in the area.
The research also revealed that students remain the highest yielding tenant type with an average yield of 7.62%, while houses in multiple occupation were the most profitable property type with an average yield of 7.56%.
Nigel Terrington, chief executive of Paragon, says: “It is interesting to see that the West Midlands is generating the highest yield.
“The area is a hub for manufacturing, has a strong professional services sector, is home to several large universities and is undergoing significant redevelopment, so therefore attracts a healthy mix of tenant types, including students, young professionals, manual workers and economic migrants. All of which contributes to a healthy, regional private rental sector.”
Paragon worked with market research firm BDRC Continental to survey almost 600 landlords across the UK in September.
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