View more on these topics

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.”

Recommended

Another Towry man for Wentworth

IFA retirement specialist firm Wentworth Rose has appointed Malcolm Thomas as head of pensions, the second recruit from Towry Law in the last month. Thomas joined Hogg Robinson in 1994 and moved to Towry last year as sales manager leading its retirement advice teams. Towry is requiring board director Tudor Taylor to honour his contract […]

CML welcomes cut as lenders slash rates

The Council of Mortgage Lenders has welcomed the announcement by the Bank of England to cut interest rates to 4.75 per cent from 5 per cent. The CML says the move will help underpin consumer confidence and counter the risk of recession following the terrorist attacks last week. A host of lenders have already responded […]

FSA sought clarity after confusion on fund suspensions

The FSA called for clarity from UK investment firms last week as confusion reigned in the IFA community over which funds remained open for trading.On Wednesday, the day after the terrorist attacks in the US, the majority of fund managers suspended all funds with significant exposure to closed markets – principally US, Far Eastern and […]

Parsoli fills gap for Muslim investors

PARSOLI GLOBAL ISLAMIC EQUITY FUND Type: Oeic. Aim: Growth by investing in blue chip international stocks through Shar&#39iah. Minimum investment: Lump sum £1,000, monthly £50. Investment split: 100 per cent blue chip international funds. Isa link: Yes. Pep transfers: Yes. Charges: Initial 5.75 per cent, annual 2 per cent. Commission: Initial 3 per cent, renewal […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment