Rental Yields Remain Attractive for Buy to Let Investors

14 August 2012 Categories: News

Rental Yields Remain Attractive for Buy to Let Investors

Despite the current economic problems being faced by a growing percentage of private rental sector tenants, it seems that average monthly rents and rental yields are still improving for buy to let investors…a sure sign that tenant demand is still as high as ever. Rental yields across the UK were recently measured by BM Solutions and although large variations were recorded it seems that landlords everywhere are enjoying healthy profits.

The results of the research conducted by BM Solutions, the buy to let branch of Lloyds Banking Group, showed that landlords in The North are currently seeing the highest average rental yields of 7% while the North West comes a close second with 6.5%. The lowest yields were found in the South of the country with the South-East and South-West recording yields of just over 5% and London scoring lowest with 4.8%.

Even with these encouraging figures though spokesman for BM Solutions, Phil Rickards, warned that they can be misleading in some cases, saying “Whilst rental yields have remained steady over the past year, it should be noted that these figures do not take into account the time when properties are vacant – which can impact the average yields.

“Despite the encouraging figures, it’s still really important for any potential investors in the market to do their homework and seek expert advice first.”