North West Outstrips Central London For Rental Returns

Landlords from the North West are enjoying the highest rental returns in England at 6%, figures from the Association of Residential Letting Agents show.

And while Scotland, Wales and Northern Ireland have also registered broadly rising returns, those in central London have been falling for the past six months from 4% to 3.5%.

Ian Potter, managing director of ARLA, said "Our data clearly shows that landlords around the UK must choose their rental property wisely to ensure they receive the returns they expect. I would always recommend using an experienced ARLA agent when letting a property as they will be able to give the most up-to-date insight into the local rental market."

One reason for this difference in rental rates could be the variation in capital values around the country. ARLA has found that the value of the average rental house in London stands at £1,251,000 compared to just £173,000 in the Midlands.

Meanwhile rented houses in Scotland, Wales and Northern Ireland have an average capital value of £197,000. The range of buy to let mortgages now available may make this a good time to purchase up North.