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23/01/06 - Rental yield rise suggests positive growth fro BTL landlords in 2006.

Figures from Landlord Mortgages reveal overall rental yield figures in England rose from 5.87% in Q3 2005 to 6.03% in Q4 2005. Experts say the rise in yields is an early sign that the buy-to-let market is on the road to recovery. The outlook for 2006 is reasonably good with strengthening rents and tenant demand.

Andrew Moss, product development manager at Mortgage Express, stated: "Factors supporting demand include affordability, with rental costs remaining lower than buying. Research suggests people now see renting as a positive lifestyle choice with real benefits including flexibility when it comes to moving. It is no longer regarded as being simply a financial necessity."

Lee Grandin, managing director of Landlord Mortgages, says: "Provided the economy remains stable and we don't see any sudden increases on base rate, 2006 should see a vibrant buy-to-let market with growth driven by increased consumer confidence and high demand." (Mortgage Strategy)

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