Rental yields and tenant demand keep growing

The average yield on rental property increased from 6.1% in the first quarter of the year to 6.5% in the second, according to the latest Private Rental Sector Trends Survey commissioned by buy-to-let lender Paragon.

Professional landlords with property portfolios fared better than their ‘amateur’ counterparts, reaching 6.9%.

Rental yield is defined as a property portfolio’s annual rental income as a percentage of its total value.

When quizzed about levels of tenant demand, 36% said they believed it is growing, while 55% think demand is stabilising right now. Going forward, 44% expect demand to rise over the next 12 months.

A fifth of buy to let investors plan to buy another investment property in the next three months.

Read the full story at Mortgage Solutions

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