Rental returns 'rising steadily'

News Category: Marketing

This article was brought to you by Rentman the premium rent management software.

More landlords and lettings businesses could be putting property software to good effect as research shows that rental yields increased steadily in the fourth quarter of 2008.

The study, by Paragon Mortgages, has shown that the average yield across a landlord's portfolio now stands at 6.1 per cent, up from 5.7 per cent in the third quarter.

But owners of property to rent expect this figure to increase to 6.3 per cent because of rising rent levels and low house prices.

The findings come after UK letting agent Your Move reported that rental demand in December had seen a 63 per cent annual increase.

Further to this, the Paragon Mortgages private rented sector report fund that 33.5 per cent of landlords believe tenant demand is growing in the current economic climate.

Commenting on rising property purchases by landlords during the fourth quarter, John Heron, managing director at the firm, said investors are "spotting bargains in local markets and are purchasing with a long-term view".

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