So whats the % rental yeild in your area then?

[535dman]

As above - been looking at the BTL scene recently. I moved from Luton where the rental yield today is around 5.5 - 6% to Gerrards Cross in Bucks where it is around 3.5% at todays prices.

I've just basically calculated:

Yearly Rent divided by purchase price x % I know some people use 10 months to calculate etc but lets keep this simple using the above to get an idea.

Wondered what the rest of England looks like? Are there any websites around which give you this information?

Oops I spelt it wrong in the title

Edited by 535dman on Friday 7th March 16:58

[The Londoner]

Mine currently shows 4.8% in London. Tenant about to renew for a slight rental increase so should get up to 5.

[JB996]

North East Lincolnshire its about 6.1% at the moment

[okgo]

6% In kingston, from some figures I have been dealing with

[qureshia]

Newish 4 bed town house in Hertfordshire (aprox 15 miles out of the m25) and 30 mins into City of London by train (45 by car)

Gives yield on today’s value of 5.4% (on your formula)




Bought in 2003 for £290k (after incentives)

Rented out at £1500 a month (edge of village but close to lots of big businesses so normally rented to executives or work placement students

Current value £330k (based on offers made)


Have to say capital gain over the last 4-5 years has been massively disappointing at aprox 3.5% - but hey ho this is the south east market (outside the inner circle of London)

So glad didn’t re-mortgage when the estate agents and neighbors were talking of £390k plus values a couple of years ago

Current tenants move out this weekend so now up for sale – this BTL game is not for me much rather see the money tied up in an enjoyable items like a f430

Edited by qureshia on Sunday 9th March 08:53

[qureshia]

Forgot to add

Looked at relocating to Crewe (this year) and looked at both buying and renting

Price to buy £600k - £900k price to rent £1500 to £2000 a month

This would give the owner a yield of 3%

Edited by qureshia on Sunday 9th March 08:54

[john_p]

I'm renting at 2% in Gerrards Cross

[Maxf]

I'm renting at about 1.7% in London. Happy days!

[ATG]

okgo said:

6% In kingston, from some figures I have been dealing with

orly? Just across the river in Hampton Wick/Teddington I'm renting at 3.3% ... 2 double bedroom - god forgive me, "maisonette" - views and communal garden onto the river, hot and cold running OAP neighbours, a garage only smaller. Would be interested to see what could be earning 6% around here.

[okgo]

ATG said:

okgo said:

6% In kingston, from some figures I have been dealing with

orly? Just across the river in Hampton Wick/Teddington I'm renting at 3.3% ... 2 double bedroom - god forgive me, "maisonette" - views and communal garden onto the river, hot and cold running OAP neighbours, a garage only smaller. Would be interested to see what could be earning 6% around here.

Aplogies I was looking at the figures I have got for a few cheap places in kingston.

Must find out the average. And obviously It depends who you let it through

[Plotloss]

Going on that calculation I'm renting at 1.17%

Is that good or bad?

Not that I understand it mind you as I couldnt buy the house I live in, even on an interest only for the monthly rental payment.

[okgo]

Plotloss said:

Going on that calculation I'm renting at 1.17%

Is that good or bad?

Not that I understand it mind you as I couldnt buy the house I live in, even on an interest only for the monthly rental payment.

Thats pretty good for you.

Not great for him.

[okgo]

Plotloss said:

Going on that calculation I'm renting at 1.17%

Is that good or bad?

Not that I understand it mind you as I couldnt buy the house I live in, even on an interest only for the monthly rental payment.

Thats pretty good for you.

Not great for him.

I think

[Maxf]

okgo said:

Plotloss said:

Going on that calculation I'm renting at 1.17%

Is that good or bad?

Not that I understand it mind you as I couldnt buy the house I live in, even on an interest only for the monthly rental payment.

Thats pretty good for you.

Not great for him.

I think

Yep. I couldnt afford to buy my house (and wouldnt want to spend that much on a 2 bed house either) - I think the mortgage would be about 3x what I pay in rent.

Something to remember though - many landlords have owned these houses for years (mine is one of the big London estates and built the house - 150 years ago) so the low rental yield today is immaterial to their actual costs.

[superlightr]

getting 8% on the above formula in Burgess Hill sussex. ie 12 months based on the purchase price paid although that is now more like 6% with what the property is worth now. commercial shop with seperalty rented out flat above. with the bonus of half maintenance is paid by the shop.

[ATG]

okgo said:

ATG said:

okgo said:

6% In kingston, from some figures I have been dealing with

orly? Just across the river in Hampton Wick/Teddington I'm renting at 3.3% ... 2 double bedroom - god forgive me, "maisonette" - views and communal garden onto the river, hot and cold running OAP neighbours, a garage only smaller. Would be interested to see what could be earning 6% around here.

Aplogies I was looking at the figures I have got for a few cheap places in kingston.

Must find out the average. And obviously It depends who you let it through

No need to apologise, I'm genuinely interested to see what kind of properties are returning a bareable yield round here. As always it seems to depend hugely on what type of property you're looking at ... e.g. I saw some estate agent, possibly on crack, offering a house round here for rent at £9k a month and it certainly didn't look like a £2 million quid house to me. Equally well, I can imagine small flats and studios may offer better rental return than the ubiquitous 2 bedroom flat.

[okgo]

The main ones that are returning that are the cheap 2 bed flats surrounding the uni.. ( of which there are some going every now and again )

My old manager bought a flat for about 200k on the road behind the main campus..

It let to three students at £1275.. which according to said calculation would be 7.6%..

The problem with teddington is its expensive to buy and it largly still fetches the same kind of amount as something in Kingston which is slightly cheaper to buy..

But I think if you have a student property in the right location it doesnt really matter what the standard is as long as it looks quite nice, and you can get a group of two or three in there that pay the premium..

Because students have a decent amount of wedge these days, and the demand kills the supply in a town like kingston.

But as you say in hampton wick and teddington are not offering the same market as kingston IMO. Neither surbiton, that has another market again.. things are expensive, and they can get the cash because of the rail link.. I am sure my landlord is getting about 6 percent for our place just because its 5 mins from the station the git.

[okgo]

The main ones that are returning that are the cheap 2 bed flats surrounding the uni.. ( of which there are some going every now and again )

My old manager bought a flat for about 200k on the road behind the main campus..

It let to three students at £1275.. which according to said calculation would be 7.6%..

The problem with teddington is its expensive to buy and it largly still fetches the same kind of amount as something in Kingston which is slightly cheaper to buy..

But I think if you have a student property in the right location it doesnt really matter what the standard is as long as it looks quite nice, and you can get a group of two or three in there that pay the premium..

Because students have a decent amount of wedge these days, and the demand kills the supply in a town like kingston.

But as you say in hampton wick and teddington are not offering the same market as kingston IMO. Neither surbiton, that has another market again.. things are expensive, and they can get the cash because of the rail link.. I am sure my landlord is getting about 6 percent for our place just because its 5 mins from the station the git.