11 Aug

Landlords concerned over rental yields

Landlords concerned over rental yields

Some landlords have concerns over steady rental yields, according to new figures.

A report from the National Association of Landlords (NLA) shows the proportion of landlords who feel positive about relying on a steady rental yield has fallen by 15 per cent over the past two years - down from 56 per cent in the second quarter in 2015 to 49 per cent in the second quarter of this year.

There are regional differences in the data, with rental yields varied across the UK. In the East Midlands landlords are seeing the highest rental yields of 6.9 per cent, compared to landlords in outer London who have yearly yields of five per cent.

 “Average rental yields have remained fairly stable over the past few years, yet there is a steady increase in landlords losing confidence in their ability to make a profit from letting property,” said Richard Lambert, chief executive officer at the NLA.

“This perception probably exists because many will now be feeling the impact on their businesses of greater taxation and the costs of complying with regulation, which are eating away at their profits and making it harder to provide homes,” he explained.

“Like any business, the increasing value of the capital assets on your balance sheet will be of little help if you are treading the fine line between profit and loss, especially if you can’t keep up your mortgage payments in the short term,” he added.ADNFCR-1222-ID-801838928-ADNFCR

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