England 22/03/2013 – Increasingly people in the UK are choosing to rent rather than buy their own home, which is improving landlord’s yield rates
Across the UK, there is an increase in residential lettings, Hull and the surrounding area is no exception. In the north of the UK, more people are renting than ever before, something some are surprised to learn.
It is common knowledge that the gap between the cost of houses and wages has widened in the past decade, leaving more people unable to afford to buy their own home. However, house prices in the North of the UK have risen more slowly. Logically more people in the north should be able to afford to buy their own home. In reality, this is not the case. Unemployment levels are higher and wages are generally lower than in other parts of the UK. This means that the gap between wages and the cost of buying a house is nearly as wide as it is in the South East. As a result, more people in the north of the UK are having to rent rather than buy. Hull, in particular, has a high level of unemployment. Significant proportions of those with jobs are not in secure jobs, or are paid the minimum wage.
Northern landlords experience good returns on their investment
For Northern landlords, this is very good news indeed. It means that they have a big pool of tenants looking for a house or flat to rent. This means that occupancy rates are good.
During 2012, Northern landlords achieved a yield rate of 6.6%. This was the best in the country. Rents in Northern cities like Hull are far lower than those in the South East, but the cost of buying property is also far lower. This means that Northern landlords have far lower mortgages to service, which means they can still generate a good level of income from their properties.
Garness Jones have been providing property management and surveying services in the city of Hull for several decades. In the past few years, occupancy rates and the amount of rent that can be charged have both increased. Property in Hull is potentially very lucrative for landlords.
Contact:
Garness Jones
79 Beverley Road
Hull, East Yorkshire
Zip: HU3 1XR
Tel: 01482 564564
Email info@garnessjones.co.uk
Website: http://www.garnessjones.co.uk/