Insurance News Archive

Rental yields hit 6.4% average for UK landlords

The average landlord in the UK can now expect an average rental yield of 6.4 per cent, it has been revealed.

According to Paragon Mortgages' buy-to-let index, yields in May rose to their highest level since the beginning of 2006.

Rental incomes have increased by 12 per cent over the past year and six per cent over the last six months, according to the index.

John Heron, managing director of Paragon Mortgages, said strong tenant demand has been pushing up rents, letting landlords achieve higher yields than in the previous two years.

"Landlords who are able to take advantage of cooling house prices are fulfilling a vital social role," he continued.

"Investors remain better placed to buy property than most owner occupiers or first-time buyers and people still need places to live."

Meanwhile, the editor of Landlordzone.co.uk recently cautioned landlords they will need to keep their properties up to standard as the rental market becomes more competitive.

Tom Entwistle said worsening recession and redundancies in bigger numbers could make it more difficult to let.

24 Jun 2008