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High Rental Yields Help Attract Reluctant Landlords
More 'reluctant landlords'are entering the market as high rental yields make buy to let attractive, new figures suggest.
Research conducted by the Association of Residential Letting Agents found 47 per cent of members are reporting an increase in unplanned lettings, as people turn to rental property as a source of income until house prices rise.
The trend was said to be particularly noticeable in the north-east and the north-west.
David Lawrenson, private rented sector expert at LettingFocus.com, said the strong rental yields currently achievable, particularly in central London, serve to make buy to let property an attractive investment.
He added that this is particularly noticeable in comparison with the return people will see from savings accounts, with the best rate offer from a bank being "4.6 per cent over five years if you put it into the highest five-year bond".
"The net yield achievable [on rental property] can be about 4.5 percent or more and from that view it is quite an attractive investment. Chances are that the property's value won't go down, so you are getting a good yield aswell," Mr Lawrenson concluded.
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Article date: 1/11/2012 12:00:00 AM