Landlords report strong market for rental property
Published: 28-Sep-2007
This article was brought to you by Rentman the premium property management system.
Despite the fact that the recent financial turmoil has reduced the number of buy-to-let mortgages offered by lenders, landlords have still reported improved yields and tenant demand.
A new study by Paragon showed that rental yields remained firm at six per cent in September and that total annual return jumped to 10.3 per cent - compared to 9.4 per cent last quarter.
In particular, landlords reported that they have been able to retain profit levels as a result of increasing tenant demand.
"The current housing market is in many respects a positive signal for buy-to-let, which has certain counter-cyclical characteristics relative to the mainstream market," explained Nigel Terrington, chief executive of Paragon.
"Tenant demand remains buoyant and investors continue to invest."
However, Moneyexpert.com recently reported that landlords could struggle to find new mortgages for their investments as many lenders were reducing their buy-to-let ranges, or adding extra fees and conditions.
Find out more about letting agency software.
