Attractive yields entice buy-to-let investors
With one in ten properties in the UK delivering gross rental yields of 10% or more, now could be the time to expand your buy to let rental portfolio, or take your first steps on the property investment ladder.
According to Countrywide, rising rents and stabilising house prices are making rental yields highly attractive to investors, with an average yield of 6.2%. The largest lettings network in the UK found that of all properties purchased and rented through Countrywide in 2012, approximately half achieved gross rental yields of more than 7%.
For the second consecutive year, the number of new tenants registering for private rented accommodation has increased by 25%, with more than 340,000 new tenants signing up to let a property in 2012, up from more than 275,000 in 2011.
Nick Dunning, Group Commercial Director at Countrywide, noted: “The availability of more competitive buy-to-let mortgage products, along with fantastic yields, is creating a good opportunity for investor landlords to expand their portfolios to match the high demand for rental accommodation, as renting for longer is becoming the new norm.”
Regionally, the South of England recorded the highest volume of new tenants registering with Countrywide in 2012 – the 116,000 applicants represented a 27% rise from the previous year – the growth of new tenant applicants was highest in the North of England, where Countrywide recorded a 49% increase to almost 63,000. Countrywide figures also show that the average rent in England, Scotland and Wales in 2012 was £827 per month and in London, more than £1,600 per month.
If you fancy buying into the property investment dream, it requires thorough research however if you are prepared to tread carefully and do your investigation before committing to a purchase the rewards can be fantastic. Take a look at our small selection perfect rental investment properties below:
|This well presented bright studio flat is situated on the eighth floor of a purpose built lift serviced development.The property comprises a light & airy studio room with far reaching views over London, separate kitchen, bathroom and generous amounts of storage space. Located within close proximity of Swiss Cottage Tube (Jubilee Line) this flat is an ideal buy to let investment and is available for £189,950.|
|This one bedroom first floor flat comprises of a living room, kitchen and bathroom. The property is currently let out on an assured short hold tenancy with the monthly rent being 495.00 per calendar month therefore giving a yield of around 7% per year making it an ideal buy to let investment property. The property is currently available for £89,950.
|This 6 bed home is the ideal investment opportunity. Tennanted until August 2013 the property is situated in popular Neville’s Cross in Durham. With a gross yield of approximately 8.6%, Madeline Mews would make an excellent acquisition for any investor.The accommodation includes; entrance hall, spacious living room, modern fitted kitchen and wc to the ground floor, three good sized bedrooms and a shower room on the 1st floor and three well proportioned bedrooms and a second shower room on the 2nd floor. The property is on the market for £255,000.|