Thursday, November 15, 2012

Terraced houses hold highest yields

Average rents have stayed strong so far during 2012 as tenant demand remains high, and the average monthly income was again over £1000 a month during quarter three. However, there is always a wide variation in rental income depending on property and tenant type. According to the Index, student tenants provide the highest rental yields for tenant type (often from HMO properties) with an average yield of 8.23%.

Terraced houses provide the highest rental yields for property type at 7.28%. Students in terraced houses on average provide a rental yield of 8.34%. Given that the average rental yield overall was 6.60%, landlords may look to the student segment of the rental market to maximise their returns.


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