Landlords 'seeing increasing tenant demand'

News Category: Industry News

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Landlords and letting agents are benefitting from increased yields and demand for rented property, according to new statistics.

Research conducted by Paragon Mortgages has revealed that average rental yields in the second quarter of 2009 stood at 6.4 per cent, an increase of 0.2 percentage points from the first quarter of the year.

John Heron, managing director for the firm, said that the current favourable conditions for landlords were due to a continuing lack of mortgage availability for first-time buyers such as students and younger professionals.

He also suggested that the current yield levels could encourage interest from those willing and able to invest in the buy-to-let market.

Mr Heron said: "Landlords have enjoyed increased levels of tenant demand throughout 2008 and 2009 and it looks like that will continue into 2010."

The advice echoes that given by property website Smartlandlord earlier this month, which suggested that landlords looking to expand their property portfolio would be able to secure favourable yields.

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