New research from Paragon Bank has revealed that landlords in the North East are making average rental yields of 8.13% – the highest in the UK!

Wales came in a close second at 8.07%, with the North West taking third place at a respectable 7.84%. Yorkshire & Humber also boasted impressive returns, with landlords enjoying average yields of 7.54%.

The Secret? Affordable Property Prices!

The report’s authors put the North’s stellar performance down to one key factor: affordability.

The Office for National Statistics backs this up, revealing that the most affordable areas to buy property in 2023 were concentrated in the North East, North West, and Yorkshire & Humber.

While the average home in England and Wales now costs 8.3 times the average salary, many areas in the North East boast significantly lower ratios, making it a haven for property investors seeking value for money.

High Demand, Strong Returns

Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, commented: “The North of England has become increasingly attractive to landlords due to the opportunity to generate strong returns on investment. Demand for rented homes is high in the North, as it is across the UK, and with property significantly more affordable to buy compared to southern regions, landlords are confident in achieving above-average yields.”

In a nutshell, the North East offers a winning combination of low property prices and high tenant demand.