Rental incomes 'alter street by street'
Published: 14-Aug-2007
As the Bank of England predicts that interest rates could increase again before the end of the year, landlords looking to expand their portfolio of rental properties need to remain careful, an industry expert has said.
Recent figures from Paragon mortgages showed that the rental market in the UK was in rude health - with typical rental incomes increasing by 2.2 per cent over the last quarter.
However, Malcolm Harrison, a spokesperson for Arla, said that landlords still need to carefully research new properties to make sure they are sound investments.
"[Prices] in the renting market are measured street by street," Mr Harrison explained. "If you are buying to let or buying to invest you just have to check out the area carefully.
"You've got to check out what the local market is all about and what do they want. When you talk to letting agents they will tell you what's in demand and the kind of property that is most successful in buy-to-let investment in that particular area."
Recent figures from the Department for Communities and Local Government (DCLG) show that house prices across the UK rose by 1.6 per cent in June. As properties continue to get more expensive more people could be forced to rent for longer.
