Rent yields continue to increase

July 27, 2009 by Brendan

CeMAP

News

Those doing CeMAP training are likely to see an increase in buy to let mortgages if they choose to start working as mortgage advisors, as yields in the private rental sector continue to rise in the UK according to a recent survey.

The rise is due to an increase in tenant demand as consumers look to rent rather than purchase.

The latest report from Paragon Mortgages shows average yields increasing for the second quarter in a row. As the report commented, this ends a rather long period of stagnation in the rental market as well as a sign of an increasingly more confident buy to let sector.

‘A lack of available mortgage finance makes it difficult for potential homeowners to purchase property and many people remain unwilling to commit to purchasing a home in the current house price environment,’ said Paragon Mortgages’ managing director, John Heron.

There is continued demand from the likes of migrant workers, students and mobile professionals, which is adding to the stronger buy to let market.

As we reported in a recent article, the buy to let market sector is seeing somewhat of a resurgence as property investors realise there are still strong yields to be had if figures are calculated correctly with the right property. With savings returns and stock market dividends at record lows, property investment is still proving popular.