High rental yields driving rental market forwards

Good rental yields are likely to continue to push the buy-to-let market forwards throughout this year, it has been claimed.

Property investment specialist Assetz has predicted that income from tenanted dwellings will continue to increase even though property values are stagnating in some regions.

Last year was a good period for many property investors, but Assetz feels there is reason to feel optimistic about even better portfolio performance in 2012.

“I expect rents to continue growing strongly, in the region of five per cent, as the banking sector failure, consequential restricted mortgage lending and poor employment prospects has left a whole generation of potential¬†first time buyers¬†with little prospect of buying a home,” said Stuart Law, chief executive of Assetz.

“Consequently, landlords are set to benefit from another year of strong yields, albeit alongside only modest capital growth for the time being.”

Landlords in London appear to be experiencing the best of the buy-to-let boom, with a recent report from HomeLet suggesting that rental yields in the capital are as much as 80 per cent greater than the rest of the UK.

Source: Paramount Magazine

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