2 Nov

Landlords seeing much better yields in the UK

Landlords seeing much better yields in the UK

British landlords are now experiencing better yields on their buy-to-let properties as the demand for homes in this sector remains high.

Recently, LSL Property Services reported that the cost of renting a house now sits at an average of £741 per month, the highest that it has ever been.

Paragon Mortgages has revealed that the yield brought in by landlords in quarter three of 2012 rose to 6.7 per cent compared to 6.2 per cent in quarter two.

Those operating in the east of England have seen the best figures for their rental houses, with yields of 7.5 per cent performing far better than London where they sat at 7.1 per cent.

John Heron, managing director of Paragon Mortgages, said: "The average yield landlords have generated in Q3 is very good, and remains around the level we have seen for the past 12 months.

"Landlords will also be carefully considering the potential for house price appreciation and the outlook for tenant demand and rent levels."ADNFCR-1222-ID-801481552-ADNFCR

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