|
Buy-to-let fundamentals stay stable
4 August 2008 10:30
Conditions still favour buy-to-let borrowers, according to new figures, who are far from deterred from purchasing more property by the current state of the housing market.
Their average rental income totalled £11,955 in June, which was roughly level with May's figure and up by 9.3 per cent year-on-year, Paragon's data showed, while rental yields also stayed stable at 6.4 per cent, which is 0.3 per cent higher than they were in June 2007.
However, with the average landlord's property value falling by 1.1 per cent from May to £185,522, which was also up by just 3.2 per cent from 12 months previously, total annual returns also declined for a third consecutive month, falling from 13.6 to 9.3 per cent.
Regionally, Wales delivered the highest rental yields at 7.6 per cent and Greater London the best rental income at an average of £19,788, while the most impressive annual returns could be found in East Anglia, at 22.5 per cent.
Paragon's managing director John Heron stated that landlords recognise the counter-cyclical nature of the market and have benefited from would-be first-time buyers put off by falling prices pouring into the rental sector instead.
|
