Scottish rental yields on the rise
Posted: 19 Apr 2006 09:45:14 GMT
While overall rental yield figures in England have fallen in the last quarter, the case in Scotland is very different, according to new research from Landlord Mortgages.
Rental yields in England have slumped from 6.15 per cent in the fourth quarter last year to 5.91 per cent in the last three months, while London has seen an even bigger decline from 6.58 per cent to 6.07 per cent.
In Scotland, however, rental yields for buy-to-let properties have jumped up from 6.27 per cent to 6.58 per cent.
During the fourth quarter of 2002, rental yields in Scotland peaked at 8.5 per cent but experts fully expected this figure to decline steadily until it reached a level more comparable with the rest of the UK.
Confidence among landlords is still high, it would seem, and despite yields falling in London and in England as a whole, there has in fact been very little variation since the end of 2003.
Lee Grandin, managing director of Landlord Mortgages, said: "London has typically recorded the lowest yield figures due to the high cost of property but has for the second consecutive quarter outshone England, despite recording a fall this quarter.
"It will be interesting to see if this trend continues as we feel that the introduction of HMO licensing is likely to affect the capital the most and we may see a gradual fall in yields over the coming months."
Recent figures from Paragon Mortgages, meanwhile, pointed to an exceptionally buoyant buy-to-let market, with higher yields, property values and rents in the early months of 2006.