Despite a seasonal slowdown in the buy-to-let market, Yorkshire has seen rental incomes rise over the month from £9,383 in June to reach £10,495 in July. Over 12 months, rents in Yorkshire have risen by 36.7 per cent. Landlord property values in the region have increased by 38.6 per cent since July 2004 to reach £143,684. Despite a large increase in property values, Yorkshire remains one of the highest yielding regions in the country, at 7.3 per cent.
John Heron, managing director of Paragon Mortgages, commented: “A number of factors contribute to the sustained demand for rented accommodation in Yorkshire. The burgeoning student population of England’s largest county, with major universities at Sheffield, Hull, Leeds and York, among others, underpin demand for rented properties. Many students, after graduation, remain in the county and as ‘first jobbers’ look for shared accommodation with their friends in the major towns.
"An important demographic trend that has sustained the growth of the private rented sector over the past decade or so has been the tendency for young people to leave the family home at a fairly young age to go on to further education and not return. In addition, there has been a net influx of jobs in some parts of Yorkshire which has helped create a requirement for more rented homes.
“When looking at the private rented sector, it’s important to remember that landlords are running a business in which customer demand is key. If individuals, couples or families need homes in a particular area, landlords are likely to respond to meet that demand.
"The North West has also seen a strong buy-to-let market over the last year, notwithstanding a slight decline in rents this month. Rental incomes in the region have risen by almost 30 per cent and property values by over 34 per cent since July 2004. Yields in the North West, at just under 7 per cent, remain above the national average of 6.7 per cent and on a par with the South West and East Anglia.
"At the same time Greater London, consistently one of the lower yielding regions, has seen yields rise slightly to 5.8 per cent this month as both rental incomes and property values rose."
