Average rental yields in the UK at 6.1%
New research from one of the UK's major buy-to-let lenders has found that the average rental yield in the UK was a healthy 6.1% in 2011. BM Solutions revealed that the average monthly rent in the UK in 2011 was £716, up from £682 the year before.
Mortgage Introducer reports that "the highest rental yields in 2011 were in the North (7.0%), North West, Yorkshire and the Humber (both 6.3%), Wales (6.0%), West Midlands and the East Midlands (both 5.9%)". Other areas, including London, the South East and East Anglia, all registered yields below the UK average.
Phil Rickards, senior manager at BM Solutions, said: "There is a very healthy demand for rental properties across the UK right now, which in part may be driven by the costs associated with buying a home: costs which, for some, will only increase as the Stamp Duty holiday comes to an end."
Some lenders struggling under the weight of buy-to-let mortgage applications
As more landlords come to the market to take advantage of these excellent rental yields, many buy-to-let mortgage lenders are struggling to cope with an influx of loan applications. Property118.com reports that "the problem is many larger banks and building society lenders have pulled their mortgage deals because of difficulties raising money on the wholesale markets and new regulations forcing them to bolster the amount they hold in reserve."
Keith of whathouse.co.uk says: "Recently, lenders including the Skipton Building Society, Accord, the Nottingham and the Hinckley and Rugby Building Society have been forced to withdraw many of their mortgage deals due to exceptionally high demand. When larger lenders raise rates on their mortgages, smaller building societies are often left with attractive products which result in an influx of applications. They then often have to close for business on a temporary basis while they clear the backlog."
Hinckley and Rugby chief executive Chris White told Mortgage Strategy: "I can't recall anything like this happening. The big lenders have pulled back which has had a ripple effect, first on lenders like Skipton and now us. We hope to be back shortly and with competitive products but it depends on what happens in the rest of the market. As a small lender we don't set the pace - if the bigger lenders price upwards we have little choice but to follow suit."
----------------------------------------------------
http://www.whathouse.co.uk is the web portal for new homes and new affordable homes in Britain, the online face of What House. Our site features hundreds of new-build houses for sale in the UK as well as news, articles, expert advice, opinion and comment.
EasyPublish this article: http://submityourarticle.com/articles/easypublish.php?art_id=262528
The increase in rent for a real estate depends upon its overall society fees.
ReplyDeletebuy to let mortgage