Latest Paragon Survey Shows Landlords Remain Positive As Yields Increase

03 July 2012 Categories: News

Latest Paragon Survey Shows Landlords Remain Positive As Yields Increase

The latest PRS Trends Survey conducted by Paragon, the buy to let specialist, has revealed that the average rental yield experienced by landlords during the second quarter of 2012 was nearly a quarter of a per cent better than during the previous quarter. The months April to June provided professional landlords with an average yield of 6.9% while small scale landlords achieved an impressive 6.5% – both of which were an improvement on the previous quarter’s average of 6.2%.

The same survey also showed that over half of the landlords questioned felt the demand for private rental property is remaining steady, while nearly 37% believe demand is still increasing and will continue to do so over the course of the next 12 months.

These encouraging figures show that the buy to let market is still a positive place for investment and as a result one in five of the landlords surveyed do plan to make additional property purchases during the upcoming 3rd quarter.

Managing director of Paragon Mortgages, John Heron, commented on the results of the survey saying, “Strong tenant demand has continued to place upward pressure on rents and we have as a result seen yields strengthen despite the pressure on consumers.

“It is no surprise to see that more experienced landlords achieve better yields, with this being driven by their choice of property type and their approach to management.”