Rental yields continue upward trend

Quarterly rental yield figures have grown again according to the latest figures from Landlord Mortgages.

Scotland recorded the largest increase with yields growing from 6.88% in the final quarter of 2004 to 7.37% in the first quarter of 2005. London also saw growth over the period with yields increasing from 5.96% to 6.08% as did the rest of England (6.03% to 6.08%). Landlord Mortgages says this is positive news for the buy-to-let market which had seen rental yields fall between Q3 2004 and Q4 2004.

The first quarter of 2005 has also seen rental yields in London catch up to match average yields across the rest of England for the first time. This could be attributed to house prices across the country showing modest increases, while London prices remained stable or fell, says the research.

Lee Grandin, managing director of Landlord Mortgages says: “We believe the buy-to-let market will continue to remain stable in 2005 and is likely to exhibit further gains. This growth may be accelerated by investors preparing for A-Day when they will have the ability to invest in residential property through self invested personal pensions.”