Rental yields hit two-year high
Published: 25-Jun-2008
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Rental yields are at their highest for two years, according to the Paragon Mortgages Buy-to-Let index.
This despite downturns in the lending and property markets that have seen buy-to-let mortgages come in for thorough criticism over recent months.
However, letting agents and landlords can breathe a sigh of relief as returns in May reached their highest level since 2006, rising to 6.4 per cent.
According to John Heron, managing director of Paragon Mortgages, the success has been down to high demand.
However, he warned that success is often dependent on the location of the property.
"With lower property prices and higher rents, the yield they [landlords] can achieve on a carefully selected and well managed investment property can be significantly higher than other forms of investment," Mr Heron explained.
The research also indicated that rental yields at residential lettings have risen steadily by 12 per cent over the last year.
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