Rental yields continue to rise in the south-east
News Category: Industry News
Published: 27-Mar-2008
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South-east England is proving to be a lucrative investment for buy-to-let landlords, with well-located flats generating the strongest income returns.
That is according to recent research from Hamptons International, which, Mortgage Solutions reported, has revealed that rental yields in the region are continuing to rise.
In addition, the research indicated that property located in Islington, Kensington and the City brought the strongest average yields in London.
Outside of the capital, some of the best yields are to be found in Brighton, Hove and St Albans.
Rob Bruce, research manager, commented: "Despite the well-publicised increase in the cost of capital, rental levels continue to escalate above house price inflation, pushing yields higher.
"For those looking to acquire new assets and happy to accept a longer-term view on capital appreciation, it is worth also noting that the average initial income returns are higher than recent years.
"With yields in London pushing 6.76 per cent in some locations, this outstrips the annual return of many conventional investment mediums, with the compounding effect of long-term capital returns."
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