Landlords 'improving' rental yield

Posted: 15 Jul 2009 11:00:00 GMT

Property yields have risen for a second quarter, according to new research.

A survey of landlords conducted by mortgage company Paragon found that rental income reached 6.4 per cent this summer.

The results showed a rise of two percentage points from the last survey after what the research describes as a "lengthy period of stagnation".

The rental yield is calculated by working out what proportion of a property's current value is being paid in rent.

Paragon said that landlords in the Midlands are the best off with a yield of 7.4 per cent.

Respondents to the survey were positive about the future lettings-market. Nearly a third said they expected tenant demand to rise over the next year.

Meanwhile, a separate study carried out by smartlandlord.co.uk showed that tenants currently expect a discount on properties rented from certain celebrity landlords.

Tenants said that they would pay a premium of almost ten per cent to rent a property from George Clooney, according to the research.

But Anthea Turner's husband Grant Bovey fared less well with respondents who said they would have to be offered more than a quarter off their rent if they found out he was the landlord.

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