Buy-to-let bargains still out there?
- 29th September 2009
- Buy-To-Let Property News
With house prices now rising rental yields are declining but the savvy investor can still find some opportunities.
Buy-to-let investments are still proving an appealing option in London but, as prices rise and yields fall to an average of 5.8%, now could be the time to buy.
The high yields of the first quarter are becoming fewer as the percentage of property offering yields above 7% is reported at 16% in the second quarter, down from 21% in the first quarter of the year.
Stephen Ludlow, Director of ludlowthompson said:
“Yield-hungry investors are moving very quickly to pick up the highest yielding properties. Although the number of properties offering high yields is now falling as prices begin to recover smart investors who research the market and are able to put down a good cash deposit can still make some very good investments.”
The stability of the London rental market has helped to support the buy-to-let trend, with landlords not forced to lower rents, as is the case in other regions, as Stephen Ludlow comments:
“Rents in London have remained relatively stable compared to the rest of the UK throughout the downturn because of a shortage of supply and strong seasonal demand.
“Some areas outside of London are suffering from an oversupply of new build flats where prices have still not found a floor.
“Sentiment in the residential property market is slowly improving but the true test of whether we have reached the bottom will come this autumn when people have returned from their summer holiday and are no longer able or willing to put off relocating or upsizing. If prices hold when volumes start to pick up then we’ll know that the property market has come through the worst.”
Yield-hungry investors are moving very quickly.
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