Over the past five years, average gross rental yields have seen a steady climb across England and Wales – and the numbers are looking very positive indeed. In February 2025, the national average hit 7.2%, up from 6% in 2020. But it’s the North West that has truly shone, with yields rising from 6.1% to an impressive 7.8% – the biggest jump of any region! 🌟
So what’s driving this growth? The key factor is rental inflation outpacing house price growth. Across the UK, average rents have risen by a whopping 44% over the last five years, compared to a 20% increase in sales prices. This has created a real boost in returns for landlords – especially those with flats, which now offer an average gross yield of 7.4% (up from 5.4%). Houses are sitting at 5.7% (up from 5.1%).
Here in Lancaster and Morecambe, we’re seeing the same trends play out. Rents have been climbing steadily, while house prices remain relatively affordable – creating a real sweet spot for savvy investors. 💡 Whether it’s a student flat in Lancaster or a family home in Morecambe close to the promenade, opportunities are still out there if you know where to look.
Of course, the market isn’t without its challenges. Increased legislation and compliance requirements have added pressure to landlords. Yet despite this, confidence remains strong: 71% of landlords plan to keep their portfolio the same this year (up from 66%), and 9% even plan to expand. That’s a clear sign that many still see long-term value in property.
At JDG, we’re working with both new and seasoned investors to help them find properties that offer strong returns, good tenants, and long-term stability. If you’re thinking about investing – or expanding – now might be the perfect time to explore what’s available in our wonderful city and coast. 🌊
📞 Give us a call on 01524 843322
Thanks for reading and remember we are always here to help.
Josh
