Wednesday, Jul 12, 2006

Where's the profit for most in buy to let?

Firstrung: Buy to let investors under pressure as rental yields fall to four year low

Rental yields for Landlords have fallen to a four-year low in England and London, according to figures released by Landlord Mortgages. Figures for the second quarter of 2006 show rental yeilds have fallen to 5.69 per cent in England and 5.70 per cent in London.

Posted by Converted Lurker @ 12:27 PM (558 views)
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1. Surfgatinho said...

So BTL now makes about as much sense as taking out a load at 6.9% and putting it in a high interest savings account. Actually slightly less sense as there is no risk of negative equity or non-payment.
I think those muppets who have jumped on this band wagon in the past 3 years are about to have a harsh lesson in why there is no such thing as a dead cert investment.

Wednesday, July 12, 2006 01:42PM Report Comment

2. Dave Lammi said...

They can't put the rents up because people will just move somewhere cheaper. Over-supply in the market.

Wednesday, July 12, 2006 06:21PM Report Comment

3. sebastian said...

Aye, I think it is tough for them to just raise rents as people generally have a figure which they think they can afford while renting.

To me I would expect people to be more fixed on the maximum amounts they are prepared to pay for renting as opposed to buying where people will stretch themselves that bit futher. The is also no shortage of houses to rent either :)

Wednesday, July 12, 2006 10:47PM Report Comment

4. Miniftse said...

It will be interesting to watch what happens with rents, rents for a room in Edinburgh have crept up about 20% in the last 4 years on my observations, 250 a month - 300 a month being the norms respectively.

Thursday, July 13, 2006 01:36PM Report Comment

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