Landlords are focussed on rental yields, plan increase

Posted under General by Alan

Results of the quarterly survey by the research agency, BDRC, indicate that 14% of the UK’s private landlords are seeing very good prospects for the private rental sector, as compared to 10% in the year 2007.

The research study conducted during July to September involved 500 British landlords. The findings are based on opinions, and expectations of landlords.

The study revealed that 18% of the landlords were expecting very good rental yield during October to December, down from 22% compared to last year’s results.

The study however points out that large number of landlords are less optimistic about capital gains from property when compared with expectations in October 2006.

60% of landlords are now focussing on rental yield and 17% have plans to hike rents by an average 5.7% before end of December. The data revealed that 38% of landlords had already started charging higher rents. The survey highlighted rather surprising observation that 20% of landlords were intending to purchase additional properties before end of 2008.

The study also revealed that 96% of those professional landlords who owned 20 or more portfolios were in profit as compared to 63% of those who owned only one property.

More