Buy to Let Landlords Benefit from Limited Mortgage Availability
A recent research carried out by Rightmove, a property website, suggests that UK buy to let landlords are the ones who benefit from scarce mortgage availability. In the past months, the average rental yields of British property investors rose up to 6% and continue to increase.
A separate research from LSL Property Services, however, released different figures, according to which return on residential property investment reached 4.5%.
It is important to note that rent are constantly growing and now stand at £700 and more.
Commenting on the findings, Mr. Shipside of Rightmove said that almost a half of tenants are concerned that rates will rise further. Meanwhile, "rental agents are reporting turning many prospective tenants away, with only those with the best references passing the beauty parade to get to view the limited new stock on offer."
Another reason for UK rent rates to grow is the interest from overseas property investors. In particular, those are people from China and Russia.
Most popular searches: let to buy mortgages
Obvisouly the buy to let market will increase due to the low affordability rate for most mortgages, and now as most mortgages come to around 15%-20% things will only get better for landlords.