Landlords need to look at better returns

Many surveys show the best yields are now in the North of England, with its low capital values and reliably strong rents.

A recent survey analysed over 500,000 homes across 2,700 postcodes, finding the bulk of the 25 highest yields (ranging up to 13%) in the north.

If you do sell to buy elsewhere, remember some evergreen rules: locations with strong employment stats and transport links and substantial student populations, typically provide the best returns. But always check local agents to assess on-the-spot market conditions.

Buy-to-let and students

Landlords could well be missing out on the blossoming student rental market sector as they are unaware of the potential returns on offer. According to a new report recently released of existing landlords over 40% said they were completely unaware of the potential returns this type of letting can produce.

The number of students is rising at a rapid rate and over the next decade the figure is expected to double. One other very important factor many landlords miss is that the UK is becoming a very popular destination for foreign students which again is a very lucrative market.

The 5 reasons to consider

1) High yields, depending on location between 7%-10% net yield is possible

2) Managed & Maintained, plenty of very good local companies with experience in this type of letting

3) Demand, rising student levels means there is always a demand for this type of property

4) Shifting priority, students have shifted since the rise of tuition fees to private shared letting

5) Options open, any landlord interested in this type of business can invest

Help

If you require assistance with your mortgage planning please do call and one of our fully qualified advisers who will be happy to assist.