Tightness in rental yields are partly an inverse result of capital appreciation, so the BTL buyer is always in a win-win situation, argues Jeff Knight, director of marketing at GMAC-RFC.
The lender has today announced a tracker product specifically for the buy-to-let market, which it argues requires up to a quarter less rental income to enable like-for-like purchases or remortgages. However, the general challenge of paying off house prices that are rising faster than rents go up, and which is leading to the much-debated margin squeeze on BTL landlords, should be put in perspective of ownership of the property itself, Knight says. Despite house price growth outstripping rents coupled with rising interest rates causing problems for some landlords, the fact is property own...
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