One in ten properties in the UK is delivering gross rental yields of 10% or more, while average yields across the country are 6.2%.
The figures are from Countrywide, the UK's largest property and mortgages chain, which says that of all properties purchased and rented out through Countrywide last year, approximately half achieved gross rental yields of more than 7%.
Countrywide also reports that for a second consecutive year, the number of new tenants registering for private rented accommodation increased by 25%, with more than 340,000 new tenants signing up in 2012, up from more than 275,000 in 2011.
Buy-to-let mortgage lending in the first nine months of 2012 amounted to £11.8bn, up 19% when compared to the same period in 2011.
Nick Dunning, group commercial director at Countrywide, said: “The availability of more competitive buy-to-let mortgage products, along with fantastic yields, is creating a good opportunity for investor landlords to expand their portfolios to match the high demand for rental accommodation, as renting for longer is becoming the new norm.”
Regionally, the South of England recorded the highest volume of new tenants registering with Countrywide in 2012 – the 116,000 applicants represented a 27% rise from the previous year. However, the growth of new tenant applicants was highest in the North of England, where Countrywide recorded a 49% increase to almost 63,000.
Countrywide figures also show that the average rent in England, Scotland and Wales in 2012 was £827 per month, and in London more than £1,600 per month.
Article courtesy of Landlord Today