In February of 2015, we saw the highest year on year rise in rental prices in almost two years. This is considerably evident in London area where rental prices have boosted by 4.9 percent year on year, significantly surpassing inflation.
Landlords can now expect to collect a gross yield of 5% on a usual rental property in areas like England and Wales.
Both investors and banks are keen to take advantage of the rising opportunities in the BTL market. Mortgage rates for BTL borrowers are at exceptional lows and the amount of lending available for investors and landlords continues to rise.
The high yields available from BTL properties mean that this is a very smart sector for both investors and landlords right now.
Demand for rental property considerably outweighs supply, and rents continue to increase as a result.
The BTL sector offers investors the access to high yield assets while allowing them to benefit from exceptional low mortgage rates.
With annuity reform coming into effect, we anticipate seeing a number of pensioners spending their pensions to take advantage of the opportunities within the BTL sector and the high returns obtainable.