Insurance News Archive
Buy to let insurance holders enjoy 6.4% rental yields in Q2
Written by Judith Stevenson
Buy to let insurance policyholders saw the average yield across their portfolio rise to 6.4 per cent between April and June, up from 6.2 per cent in the previous quarter, according to the latest report.
Figures from Paragon Mortgages show that nearly one in ten landlords have had to extend their buy to let insurance cover due to adding to their portfolio in 2009.
The company's Private Rented Sector Trends report for the second quarter (Q2) of the year also revealed that 30 per cent of proprietors predict that tenant demand will increase over the next year.
However, lending levels are hindering extension of property portfolio insurance cover, according to 43 per cent of respondents.
"Landlords are telling us that they want to buy new property because they recognise that yields are increasing, but the lack of available finance in the buy-to-let mortgage market is making it difficult," said John Heron, managing director of Paragon Mortgages.
Alan Ward, chairman at the Residential Landlords Association, said recently that proprietors with high loan-to-value mortgages have been particularly badly affected by the fall in property prices.
27 Jul 2009
