The gross rental yield of a property is equal to the annual rental income of the rental property divided by the price of the property. As property and rental prices vary significantly across the UK, it is important to identify property investment opportunities in areas where gross rental yields are attractive and tenant demand is high. This page provides the average property value and average monthly rent for a property so that you can determine if the rental yield of your property will make your investment worthwhile. The values for these calculations were taken from the 22 June 2022 Office for National Statistics releases for House prices and average rental amounts.
The average monthly rent for a room in the North East is £607 and the average monthly rent in the North East is £577.
The average price of a property in the North East is £148000 which means that the gross yield for renting out a three bedroom in the North East is 4.92%. This value was determined by dividing the average monthly rent by the average property price.
In order to secure your rental income, it is important to take on tenants with lawyer-approved tenancy agreements. Moreover, it is essential to draft and sign contracts cost-effectively as your running costs will ultimately impact your rental yield. Using a platform like Legislate allows you to improve your rental yield by reducing your legal costs. Legislate also allows you to automate your compliance by providing a digital audit trail of the acceptance and signature of rental contracts by your tenants. To create a tenancy agreement now, simply sign up and specify the terms of your assured shorthold tenancy agreement (bedsit, HMO, sole-occupancy) by answering simple questions in minutes!