Average rental yields 'are set to rise'
15th Aug 2012
The average rental yield in the UK will either remain even or rise in the weeks and months ahead, it has been estimated.
David Lawrenson, private rented sector expert at the advice organisation Letting Focus, has said he does not expect yields to deteriorate or reduce in any way.
Because of the lack of availability of finance, there are not many landlords who can get into the market, he noted.
"I have seen people advertising new fantastic buy-to-let mortgages at about four and a half or five per cent over the base rate, so that is five or five and a half per cent. Given the cost of current financing, you are going to be getting rates like that," Mr Lawrenson said.
The overall picture is that yields look good and there is unlikely to be any diminishment in them.
One reason is that the lack of access to finance for first-time buyers and new landlords means that more people are therefore set to end up renting.
If there is a rise in rents, and house prices are steady, then there will probably be rising rental yields, all things being equal, the expert predicted.
"These are national figures, so it does depend on where you are in the country. These are generalisations, but I think it will continue to trend upwards," he concluded.
Posted by Staff Writer: Robin Stenson
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