Landlords are reaping the rewards of growing rental demand - whathouse.co.uk
http://bit.ly/PQXJUj
AppId is over the quota AppId is over the quota Ever since the property sales market began to encounter difficulties at the start of the global credit crisis in 2007, many landlords have benefitted from a hike in demand from people looking to rent. While some tenants wait to see what will happen to the property before buying a new home, others are caught in the rental trap because they cannot raise the necessary mortgage to finance a property purchase. Rising tenant demand coupled with an overall lack of housing stock, caused in part by a shortage of new homes being developed, has meant that rents have boomed across most parts of the country, pushing rental yields higher in the process. The latest PRS Trends Survey, commissioned by specialist buy-to-let mortgage lender Paragon Mortgages, revealed that the average yield increased to 6.5% in the second quarter (Q2) of the year, up from 6.2% in Q1 2012, and on the same period last year where the average was also 6.2%. Rental yield is a property portfolio's annual rental income as a percentage of its total value. They are an important factor for landlords when making a property purchase decision, as they give a good indication of how well a property, and in a wider sense, a portfolio is performing. Landlords were asked for their views on current levels of tenant demand; just over half (55%) of landlords said that, for the moment at least, demand appears to be stabilising. However, more than a third (36%) believe tenant demand is growing. Professional landlords are more likely to think that demand is increasing, - 39% compared to 27% of smaller-scale landlords. Looking ahead, 44% of landlords expect tenant demand to increase over the next 12 months. A fifth of landlords are on the investment trail with 21% planning to purchase buy-to-let property in the third quarter. Although the property market in London is among the most desirable to own a home in the UK, it actually offers some of the lowest rental returns available, reflected by high property prices and the relative stability of the housing sector in the capital. Landlords aiming to achieve the highest possible rental returns will find that the greatest yields can typically be achieved in the North West of England where property prices are generally below the UK average. The Northern regions dominate as far as high rental yields are concerned, with landlords in the North East also achieving high returns. Although a distinct North/South divide exists, with the North outperforming their Southern counterparts, most areas offer pockets of opportunities as tenant demand continues to grow across many parts of the country. By Marc Da Silva. View the original article here
http://bit.ly/PQXJUj
AppId is over the quota AppId is over the quota Ever since the property sales market began to encounter difficulties at the start of the global credit crisis in 2007, many landlords have benefitted from a hike in demand from people looking to rent. While some tenants wait to see what will happen to the property before buying a new home, others are caught in the rental trap because they cannot raise the necessary mortgage to finance a property purchase. Rising tenant demand coupled with an overall lack of housing stock, caused in part by a shortage of new homes being developed, has meant that rents have boomed across most parts of the country, pushing rental yields higher in the process. The latest PRS Trends Survey, commissioned by specialist buy-to-let mortgage lender Paragon Mortgages, revealed that the average yield increased to 6.5% in the second quarter (Q2) of the year, up from 6.2% in Q1 2012, and on the same period last year where the average was also 6.2%. Rental yield is a property portfolio's annual rental income as a percentage of its total value. They are an important factor for landlords when making a property purchase decision, as they give a good indication of how well a property, and in a wider sense, a portfolio is performing. Landlords were asked for their views on current levels of tenant demand; just over half (55%) of landlords said that, for the moment at least, demand appears to be stabilising. However, more than a third (36%) believe tenant demand is growing. Professional landlords are more likely to think that demand is increasing, - 39% compared to 27% of smaller-scale landlords. Looking ahead, 44% of landlords expect tenant demand to increase over the next 12 months. A fifth of landlords are on the investment trail with 21% planning to purchase buy-to-let property in the third quarter. Although the property market in London is among the most desirable to own a home in the UK, it actually offers some of the lowest rental returns available, reflected by high property prices and the relative stability of the housing sector in the capital. Landlords aiming to achieve the highest possible rental returns will find that the greatest yields can typically be achieved in the North West of England where property prices are generally below the UK average. The Northern regions dominate as far as high rental yields are concerned, with landlords in the North East also achieving high returns. Although a distinct North/South divide exists, with the North outperforming their Southern counterparts, most areas offer pockets of opportunities as tenant demand continues to grow across many parts of the country. By Marc Da Silva. View the original article here
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