Rental yield struggles set to end

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The ‘downward spiral' in rental yields over recent years has continued into 2007, according to research from Landlord Mortgages.

However, the firm says they could recover by the fourth quarter of 2007 and ensure a strong end to the year. Statistics published by the buy-to-let broker suggests Scottish yields have seen the largest drop, falling from 6.88% (Q4 2006) to 5.99% (Q1 2007). Less dramatic declines were recorded in England (5.82% to 5.70%) and London (5.96% to 5.76%). Landlord Mortgages also says the gap between yields available on newly-purchased properties and remortgaged investments in England and London has reached its lowest level yet. It says, traditionally, buy-to-let investors will purchase a prope...

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