With house prices down in the dumps, buy-to-let yields have risen even further according to a new report by Mortgages for Businesses. HMOs in particular have seen a large rise from 9.2% to 11.1%.
This is great news if you are looking to invest in buy-to-let properties. With house prices falling you should be able to pick up properties cheaply, and gain a good rental income in the process. Anywhere outside the South East at present is looking great for picking up savvy buy-to-let investments.
David Whittaker, managing director of Mortgages for Businesses comments:
“It’s great news for buy-to-let investors, who are able to snap up cheaper property, usually at a higher LTV because lenders are understandably willing to advance more when property prices are lower. It’s a fairly simple equation: suppressed property prices, plus strong demand for rented accommodation, equals higher yields for landlords.”
In addition to the falling house prices, look at the ways you can increase the rental value: short-term investments that will lead to longer term benefits, such as greater energy efficiency, professional photography and desirable white goods which should increase the number of tenant enquiries you get, whilst allowing you to price your property slightly higher.
If you'd like to find out what your rental yield currently is, click here for a simple calculation.
It is rather encouraging for the buy to let market. We have seen an increase in first time landlords. Good to see some part, albeit a small part of our economy doing well.
Steve