19
Oct
Rental yields hit 15-month high
Rental yields for buy to let landlords hit a 15-month high in
September, new figures have shown.
Statistics from Paragon Mortgages show that total returns averaged
14.2 per cent during the month.
This compares with just 12.9 per cent six months ago, and 10.5 per
cent for the same month last year.
Areas where tiled were highest were Greater London (25.1 per cent),
East Anglia (24.5 per cent) and the North (20.6 per cent).
The growth in yields can be attributed to lenders tightening
criteria, which in turn has discouraged prospective buyers form
getting mortgages, Nigel Terrington, chief executive at Paragon
said.
"The growth of the buy-to-let market has given [Britons] more
options – before it was either live at home or buy a
property, even if it meant you were financially stretched, and we
saw the consequences of that in the early nineties with mass
possessions," he said.
"Those people who would have been looking to purchase their first
home in the current environment have the option of affordable and
good quality rented accommodation instead."
