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Flats in demand with 10% buy-to-let yields

Buying property to rent is becoming an increasingly popular way to boost investment portfolios, according to Bradford & Bingley.

In its autumn residential lettings report for investor landlords, B&B says buying to let can provide a gross return of up to 10 per cent of the property value and offers strong capital growth.

The survey looks at rental levels and other statistics based on the last 20 properties let through Bradford & Bingley&#39s 72 letting agents around the UK. It reveals the average time taken to let a property has fallen to four weeks from the five weeks reported in the spring.

The type of property in highest demand are two-bedroom flats which, according to Bradford & Bingley, offer rental returns as high as 10 per cent compared with 5 per cent for four-bedroom detached houses.

National hotspots where flats are usually let quicker than the national average include High Wycombe and Horsham, where flats are often snapped up within a week.

The report says despite mortgage rates being at their most affordable for 40 years, property prices continue to rise. With many first-time buyers being priced out of the market, renting remains a more feasible option.

People between the ages of 25 and 35 account for 47 per cent of tenants.

Head of Bradford & Bingley Letting Agents John Crossley says: “As global stocks remain volatile, investors are looking at alternative opportunities and buying property to let is continuing to prove an attractive option within the vast array of investments available.”


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