Letting agents in some regions of the UK are overstating rental returns by up to 25 per cent according to buy to let broker Landlord Mortgages.
The broker advises prospective landlords to thoroughly research properties before making any purchasing decisions.
London agents inflated rental returns by up to 25 percent followed by Birmingham agents who increased rental returns by 13 per cent. The figures are based on researchers posing first as tenants and then as potential property investors enquiring into two bedroom flats.
But letting agents in Manchester and Liverpool massively under-quoted potential rental returns by -25 and -15 per cent respectively.
Managing director Lee Grandin says: These results show it is crucially important for landlords to thoroughly research prospective properties. By relying purely on the advice of letting agents some investors may be facing a serious rental shortfall, or even be put off a perfectly good property by an overly pessimistic assessment.