Tag Archives: Experienced landlords starting to flex their muscles?

Better rental yields for landlords as demand for rental property increases

The first quarter of this year has showed very positive improvements in residential tenant demand which has in turn given landlords the opportunity to marginally increase their rents. The increase in rents has a dramatic effect on the rental yield that a property returns for its owner. In April 2009 nearly 60% of surveyors were reporting falls in both rents achieved and asking rents. This was in part due to a large number of venders with unsold houses looking to cover mortgage payments with rental income. Many of these reluctant landlords have grasped the recent opportunities in the sales market and have off loaded their unwanted housing stock.
News like this will again encourage buy to let lending specialists to dip their toes back in the buy to let mortgage market. There will be no sudden torrent of cash hitting the property sector and inflating any buy to let asset bubbles in the near future. With that said there are more buy to let mortgage products available and once the lenders money supply does become more fluid with rents rising could we see buy to let back in vogue?