Newcomers piling into buy-to-let as rental yields increase

Buy-to-let returns are on the up – and new landlords are piling into the sector.

According to UK agents Knight Frank, the average annual yield nationally was 5.4% last year – compared with a FTSE All-Share index yield of 3.8%.

In separate research, property portal FindaProperty says that rental yields in Greenwich, London, are up to 10.2% and in parts of East London are 9.4%.

Meanwhile, buy-to-let mortgage specialist Paragon says that almost one in four buy-to-let loans went to first-time landlords in the last quarter of last year – the highest level since 2006.

Richard Gordon of UKPIS said: “There is no doubt that buy-to-let is firmly back on the investment agenda. There is renewed interest from those who see the property market as a safer environment than other asset classes such as shares or even leaving money on deposit in the bank.

“There is a noticeably more positive vibe around since the turn of the year. I sense that people have had enough sitting around and doing nothing, waiting for financial Armageddon. Despite all the doom and gloom prophecies, people have decided it is time to get out there and get on with their lives and they feel confident investing in property.”



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