Insurance News Archive
Landlords maintaining 'stable' rent
UK rental income has fallen, new figures reveal, but the market remains strong.
The yield from rent payments in England and London has fallen to a four-year low, according to second quarter figures from Landlord Mortgages.
Rent prices kept stable by landlords in a bid to retain long-term tenants may be a contributing factor, the report suggests, while the increase in business across the sector as a whole may be another explanation.
"It is disappointing to see that rental yields have fallen to a four-year low across England but it is not surprising considering market factors," said Lee Grandin, managing director at Landlord Mortgages.
"In this competitive climate, landlords are sacrificing increased rental income to retain reliable long-term tenants," he continued. "This decision is made easier by the recent prevalence of excellent remortgage deals."
The buy-to-let mortgage, which the Financial Times has described as "the loan that has made landlords of investment bankers, teachers, and plumbers alike," is celebrating its tenth birthday this summer.
13 Jul 2006