Rental yields dropped less under Tory governments
Rental yields dropped less under Conservative governments led by David Cameron and Theresa May than that of Labour governments under Tony Blair and Gordon Brown, letting and sales agent Benham and Reeves has found.
Yields have dropped during the time both parties were in power due to continuous house price growth, averaging 4.5% per year under both Labour and the Conservatives.
However yields fell by an average of 2.6% per year from 1997 to 2009 under Labour which is a total fall of -33.61%, but just 0.3% per year under the Conservatives down 2.8% in total.
Marc von Grundherr, director of Benham and Reeves, said: “Probably not the first criteria that you would consider when deciding on your political allegiance but politics and a party’s housing plans can have a big impact on issues of supply and affordability within the rental market, so who you vote for could very well impact upon your personal living arrangements.
“We’re not taking sides either way, but on the face of it, Labour has been the most questionable party in power if you’re a tenant struggling with rent affordability, while in terms of investing in the buy-to-let sector, flip a coin as they’re all as mediocre as each other really.”
Blair oversaw the largest average yearly yield at 4.9% but saw a total drop of 3.4% during his time as Prime Minister, a fall of 0.4% per year.
Brown oversaw the lowest average yearly yield at 3.8% per year but yields actually climbed 1.2% in total, a lift of 0.3% a year.
Cameron and May saw a similar uplift in yields averaging 4.6% and 4.2% per year, both seeing a small increase during their times as Prime Minister.