Family homes better buy-to-let investment says guru

Posted: 05 Feb 2007 10:48:44 GMT

Family homes now offer better buy-to-let potential for capital gains and rental yields than flats, rental guru David Lawrenson has said

Family homes now offer better buy-to-let potential for capital gains and rental yields than flats, rental guru David Lawrenson has said.

The number of young families renting their homes has been "rapidly increasing" and planning policies have increased the number of high-density flats being built, he said.

Recent figure from specialist lender Paragon Mortgages have shown that rental yields on terraced and semi-detached homes are at 6.2 per cent, while flats are at 5.5 per cent.

"It is not just young people and couples who rent," said Mr Lawrenson. "It seems that a whole new sector of tenants is coming through – working families."

"In addition, landlords often find that houses are more flexible than flats as they can accommodate sharers, families or students more easily than a typical flat."

Mr Lawrenson has been scheduled to expand on his predictions for the rental market at the Homebuyer Show in London's Excel centre in London in March.

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