Rental yields remain strong
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by Gill Montia
Leading estate agents, Savills, is predicting that buy-to-let investors can continue to expect sound rental yields.
This view is based on the fact that the number of people renting in the UK continues to rise.
In addition, the average period of time spent in rented accommodation by potential house buyers is lengthening.
According to Savills, many people still want to own their home but the process whereby large numbers aspire to get a foot on the property ladder, shortly after entering the job market, appears to have been “watered down”.
This is good news for private landlords and institutional property investors because there is unlikely to be a shortage of tenants over the coming months.
Meanwhile, a number of property analysts are predicting a growth in the number of professional renters, with the UK market developing similarities to that of continental Europe.
Jacqui Daly, a director of Savills explains: “In Germany they don’t choose to be owner occupiers … historically they have been better off renting and taking subsidies from the government, putting their money in the bank than actually buying a house.”
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