Rental yields have just climbed to their highest point in a decade, reaching 6.3% in the last quarter. That’s the best news for landlords since 2014, and it means your investment properties are starting to bring in some serious cash.

The average landlord is now seeing a return of 6.3% on their investments. This is a huge jump from the low point of 5.2% we saw earlier this year, showing a clear trend of improvement. In fact, it’s the highest yield we’ve seen since 2012, when it hit 6.7%!

The Secret To Higher Yields

The numbers tell a story:

• Bigger is Better: Landlords with large portfolios (11+ properties) are seeing the highest yields at 6.9%. That’s almost a full percentage point higher than the average, showing the power of scale in this market.
• The Limited Company Advantage: Those who own their properties through a limited company are also enjoying a 6.9% yield, proving that this structure can offer a significant advantage.
• HMOs Are Hot: House in Multiple Occupation (HMO) owners are leading the pack with the highest yields of 7.2%. Clearly, this niche market is booming.

What This Means for Landlords

These figures are a strong sign that the rental market is back on track and landlords are reaping the rewards. With yields on the rise, it’s a great time to consider expanding your portfolio or investing in new property.

Paragon Bank, who produced the numbers, is optimistic about the future, stating that the high yields signal a healthy lettings market.

With yields on the rise, it’s a great time to be a landlord. So, take advantage of this positive trend and start seeing those profits climb!