East of England landlords see top yields
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by Gill Montia
Landlords saw average yield on rental property rise to 6.7% in the three months to the end of September, compared with 6.2% in the previous quarter.
According to Paragon Mortgages, landlords in the East of England are generating the highest average yield at 7.5%, followed by those in Wales (7.3%), the North East (7.2%) and central London (7.1%).
The buy-to-let lender also reports that professional landlords with 20 or more properties continue to generate a higher yield, typically 7.7%.
Meanwhile, landlords with just one rental property are achieving an average yield of 5.2% and those with between two and four properties, 6.6%.
Paragon managing director, John Heron, comments: “It is important to remember that whilst the average yield gives a good indication of how well a rental portfolio is performing, it is just one factor that landlords need to review.”
According to Mr Heron, landlords should also carefully considering the potential for house price appreciation and the outlook for tenant demand and rent levels.
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