The research is based on tracking BTL mortgage transactions nationally in the last quarter including standard BTL properties, HMO’s, multi-unit freehold blocks (MUFB) and semi-commercial properties.
Looking at purchases in Q2 of this year, more and more Landlords are targeting investment properties of lower value that can in turn deliver high yields; standard BTL properties and HMOs have achieved average yields of 6.1% and 10.4% respectively.
This is obviously the dream scenario for any kind of investment, so it’s encouraging to see Landlords making good returns in the current market conditions. The research suggests that Landlords are being more prudent when considering an investment, which makes sense in the current economic climate, so the trend is expected to continue.
Let Leeds’ Sales Consultant Annabel says “While lower value properties can achieve a higher yield, it’s important to consider the tenants who will be occupying your property in future. Tenants, particularly in the student market, are demanding high specification finishes so even though the purchase price may be lower, we may advise our Landlords to make further investment in refurbishment if needed to achieve the best possible yields.
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