Landlords may see returns rise further in 2008
News Category: Industry News
Published: 22-Feb-2008
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Total returns for buy-to-let investors could continue to increase in 2008, it has been claimed.
Malcolm Harrison, a spokesman for Arla, maintained that landlords would see rental yields rise due to the increasing demand for rented accommodation.
He said that there were a couple of important factors which were contributing to the growing demand on the private rental sector.
Mr Harrison explained: "Rental demands have been increasing anyway and that's for demographic reasons, including the rise of single households, the need for flexible working and mobility, divorce rates [and] migration."
He added that demand for rented accommodation tended to be higher during periods of house price softening.
Mr Harrison also said that buy-to-let returns were unlikely to be significantly affected by the recent interest rate cuts.
He remarked: "The typical buy-to-let investor is fairly cautious and has a relatively low lend to buy rate."
According to Birmingham Midshires, the average total return for a buy-to-let investor was 16.3 per cent in the year to December 2007.
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