Rental yields at their best in one-bedroom flats
News Category: Industry News
Published: 13-Jun-2008
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One-bedroom flats provide the best rental yield in the current climate, one lettings expert has claimed.
In London however, the worst rental yields for letting agents are seen on larger properties, such as those with four or five bedrooms.
According to the Association of Residential Lettings Agents (Arla), 39 per cent of agents claim that demand is outstripping supply in the residential lettings market.
Lesley Cairns, regional lettings director at Hamptons, notes that one-bedroom flats are set to boost regional and national trends further.
She told What Investment: "Overall, one-bedroom flats have provided the strongest income ratio.
"In quarter one of 2008, the figures reveal that average yield was 4.85 per cent for a standardised freehold/long-lease flat of 500 square feet that is in good order."
Meanwhile, the British Property Federation (BFP) has called on the government to give preferential planning and stamp duty treatment to increase the availability of rental property.
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