Landlords have increased portfolios and yields in 2007

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UK residential landlords have increased the size of their residential lettings portfolios in 2007, with many also experiencing increased rental yields, according to a new survey.

Research, undertaken by the Bradford & Bingley Group, revealed that the average size of a landlord's portfolio is now 6.1 properties, compared to 5.7 six months ago.

While rental yields have remained steady over the past six months, at 5.72 per cent, the south west in particular saw rents increase, with landlords in the area reporting a seven per cent increase since October 2006.

And landlords painted an optimistic picture for 2008, with 86 per cent of those surveyed planning on increasing their portfolio next year and 95 per cent positive about rental yields.

Jeremy Law, head of buy-to-let at the Bradford & Bingley, said: "Over half of our landlords report that they have added to their portfolio this year which is extremely encouraging and indicates that the prospects for the sector remain positive in 2008."

Property experts Savills recently highlighted the profitability of purchasing buy-to-let property in university areas, with student rents increasing by 31 per cent in the past two years.

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