Buy-to-let landlords see increased yields

Buy-to-let landlords see increased yields Landlords are again beginning to enjoy record yields on their buy to let properties.

Recent research by Mortgages for Business has suggested that demand for rented property has now become so strong that complex deals such as multiple occupation mortgages can offer yields as high as 10 per cent.

The average yield for normal mortgages is now between 5.6-5.8% since April, whilst multi-unit freehold block deals can provide returns as high as 6.6 per cent.

Kevin Cox founder of Igloolets.com a Bristol Letting agency, said “Property to let in Bristol is producing good yields for Landlords, letting agents are struggling to get property onto their books, as good quality rented property in Bristol is flying out the door”

Mortgages for Businesses managing director David Whittaker claims that there has never been a better time to visit letting agents and strike out a buy-to-let deal for a property.

He told FT Adviser: "Languishing property prices and rising rents have created a perfect storm for professional investors and landlords. "The yields on offer on investment properties are incredibly lucrative and with the owner-occupier market unlikely to change dramatically over the next eighteen months, the returns for investors will be healthy for some time to come."

Due to the nature of the current property market, lenders have been falling over themselves to offer the best buy-to-let deals to landlords for some time.

Mortgage Strategy report that the amount of buy-to-let deals on the market has risen from 298 in April to a massive 403 in the present day.