Buy to Let Rental Yields

Even after five interest rises in less than a year and rental yields around only 6%, landlords are not selling up, in fact many seem to be buying rather than selling.

Most landlords are interested in long-term returns and will not be affected by rising interest rates even though some are having to makeup shortfalls from their own incomes.

Landlords are now being slated by the press for buying property that first time buyers would normally have bought. This is not strictly true as it is more to do with the lack of property on the market.

The tax-man is also checking more rigidly on landlords that appear not to be paying the correct amount of tax by not declaring their rental income.

Rents now seem to be rising and are likely to increase during the second half of the year. Those renting now have a much wider choice of property and this is in much better condition and much safer than it used to be.

Complaints have been made that landlords have reaped many benefits of late but they are in business and provide, in general, a good service so they should be allowed to make a profit.

Landlords must now, under new laws, have tenants deposits held by a third party and must obtain a license if letting multiple occupancy property. The fine for not doing so is £5,000.

Long term buying is looking good even though more interest rates are expected. The landlords most likely to do well are those that are looking for long-term benefits.

Lenders are helping experienced landlords by introducing new products with more flexibility and easier payments.

The need for rental properties is continually growing the number of people unable to obtain a mortgage including the growing immigrant population.