Boost for Buy to Let
Rents and yields for landlords is the highest for seven years.
Average February rents rose to £11,886 from January’s at £11,604.
The demand for rented accommodation is growing because of would-be house purchasers having difficulties in affordability and means that higher rents and yields are achievable on existing properties and those added to portfolios.
There has been a 2.4% rise in rents since last month and 5.2% over the last quarter. Yields are now 6.3% compared to 6.0% three and six months ago.
Those investors who took a chance buying new build flats are having difficulties in selling them. Some short-term investors may well find that they are selling into a difficult market but long-term investors will weather the storm. This type of investor appears not the bothered by the credit crunch, as short-term difficulties do not really apply to long-term investments.
Historically high are the twelve-month investment returns in February these were at 17%, slightly down on January’s s18%.
Terrace houses generate the highest yields at 6.9%, detached houses are at 6.6%, semi-detached are at 6.55% and flats are the lowest at 5.7%.
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