Category: Buy-to-let insurance
The North of England is proving to be very prosperous for buy-to-let investors, according to a leading expert.
Speaking to the Financial Times FT Money podcast, Tanya Powley said her research has shown there are some very strong yields to be achieved by adding properties in northern towns and cities to a portfolio.
Even taking into account fees for maintenance and buy-to-let insurance, landlords with properties in Burnley can achieve a yield of up to 7.6 per cent.
She goes on to suggest that lower house prices and high rental demand in northern towns is creating very attractive yields. In London, a landlord can expect to achieve a yield of around 5.1 per cent, falling to 3.8 per cent in the South West.
Tenancy Deposit Scheme spokesman Malcolm Harrison says that with such difference developing on a regional level, the rental market should no longer be assessed using a national average.
"This is what is happening and I think this is what we are going to have to live with. We can't accept a national figure any longer – anyone looking to be a landlord or a tenant has to look at the individual area. That is the key to it," he explained.
Mr Harrison added that one thing for landlords to consider is the fact that tenancy activity may be down, but part of the reason for this is because people are staying longer in properties.
Tom Entwistle, editor and founder at LandlordZONE.co.uk, says that buy-to-let investment is still a growth industry and is likely to be that way for many years to come - providing the industry receives the right level of support from the government.
"There is the opportunity at the moment for good income returns for those able to buy the right properties in the right locations for the right prices, providing they know how to manage them well," he said.
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