Right now the average rental yield nationally is 5.1% (Land Registry March 2016) with an average house price in Cornwall of £190,000 and average rent of £880pcm. We are seeing a steady 3% growth in house prices and according to the Homelet Rental Index a 3.5% growth in rents.
Carry this forward to 2020 and the average house price will be £214,000 and with an average rent of £975. Doing the math this means that the average yield will only be 5.5% - quite a difference to the forecasted 9.15%. In fact to reach this forecast, rents are going to have to rise by more than 15% per year for the next four years in a row!
As a landlord myself, I know that I would love to see rents rocket up and my investment become much more profitable but these figures are perhaps wishful thinking than an accurate forecast.