30 Nov

Buy to let rental yields 'hit record-high'

Buy to let rental yields 'hit record-high'

Rental yields for buy to let landlords are at an all-time high as a result of continued strong tenant demand, it has been revealed.

According to figures from buy to let specialist Paragon Mortgages' October index, the average rent hit £11,066 during the month.

This represents growth of 10.2 per cent from the same period a year ago.

Meanwhile, yields are consistently around six per cent, Paragon's data showed.

John Heron, director of mortgages at Paragon, told yourmortgage.com the figures show that reports of the death of buy to let is much exaggerated.

"Much of the recent negative media comment on the buy-to-let sector has confused genuine well-researched buy to let investment with property speculation. There is solid and growing demand for decent, affordable rented homes in all parts of the country, but it is essential landlords purchase the type of property that meets tenants' needs and expectations."

He added: "These figures show that professional landlords continue to invest in the types of property where there is strong and sustainable tenant demand."

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