Brexit counties best for rental yields, research finds

The LendInvest quarterly index on the UK buy-to-let market found only two of the top 20 local authority districts for rental yield voted to remain in the EU in June, while conversely, two of the top 20 districts for capital gains voted to leave.

The survey of the online property investment business found Manchester and Liverpool – strongholds of high rental yield – voted in, while Barking & Dagenham and Spelthorne – two areas where good capital gains had been achieved on property – voted out.

LendInvest CEO Christian Faes said it was not surprising to see areas, which saw the best of the recent boom times and generally enjoyed the biggest house price rises, wanted to keep the status quo.

But he said: “It’s very interesting that the top districts for rental yield, which are often found in the North East and North West, voted so overwhelmingly for Brexit.”

He added: “Brexit may create opportunities for property investors, particularly professional and experienced ones. House prices are expected to soften, so some would-be buyers may put off buying. But they still need somewhere to live, which is good news for landlords. What’s more, if house prices do cool as predicted, then investing in property will become even more enticing.”

The survey found the district of Burnley had the highest rental yield with 7.14%, followed by Blackpool with 6.62%.

On capital gains, London came out top with 14% average gain over the period 2010-2016, followed by Waltham Forest with 13%.

Broken down by postcodes, Manchester remained the top area for rental yield with 6.8%. Coventry, Luton and Outer London moved up to joint second place, with a rental yield of 5.8%, followed by Blackburn, which yielded 5.7% on average.