A recent study by a mortgage company indicates a minor drop in annual yields, moving from 6.1% 21 months ago to 5.5% now. When you think of everything going on right now, this isn’t a disaster, and this is a level of consistency that many landlords are happy with.
Also, its important to remember this is an average, and it is possible to achieve a result better than the average. At Just Lets Peterborough, we are pleased to say we have considerable experience in assisting local landlords, connecting you with tenants.
We also help you manage your rental property, and this is a sure-fire way of achieving the best possible result when it comes to rental yield. If you need guidance in this field, speak with a local specialist with a strong track record when it comes to the letting sector.
What do the specialists say?
Steve Cox, chief commercial officer at Fleet Mortgages, comments: “The positive news is that, as our Rental Barometer shows, yields are holding up well, and while we have seen a drop-off since the highs of last year, in general there has been a consistency across most regions on a quarterly basis. That clearly has much to do with strong tenant demand, married up with relatively low levels of supply. Properties are highly sought after, and rents are strong due to the scarcity value of quality homes. Our anticipation is that, in most regions of the UK, yields will stay pretty constant especially while this supply-demand imbalance is in place.”
If you are looking to remortgage an existing rental property, we can advise you in this matter. There is never a bad time to review your finances, but right now, everyone should look to be on the best possible deal they can find.
Steve Cox also said; “We know that many landlords would like to remortgage existing properties in order to fund new purchases, however there are two areas to consider here. First is the increase in buy-to-let mortgage product pricing which has been obvious in the last couple of months, and secondly is a lack of supply to purchase. Both might well hold landlords back from acting right now, however we do anticipate that 2022 will see strong levels of remortgaging throughout the rest of the year, and as lenders get on top of their current service issues, we will see a return to stability, and pricing, for buy-to-let mortgages, although this might not be visible until the early part of next year.”
We provide guidance for all local landlords
While there are many opinions on what happens next with the rental market, we are sure there will always be demand for rental property. If anything, demand for rental property will increase in the next few months, so this is an ideal time for landlords to be active in the market.
Steve Cox concluded by saying; “There may also be an element of landlords holding off any purchase ambitions as they await to see how house prices in the UK react to the double-whammy of the cost-of-living increases and more expensive mortgages. A number of economists anticipate this will see house prices dropping off their highs, which might present a better opportunity for acquisitive landlords. Overall, for existing landlords, the rental yield figures remain a strong source of comfort, and while we believe the level of demand for PRS properties will dip, there is likely to still be enough – especially compared to property choice – to ensure they maintain good levels throughout the rest of 2022.”
Just Lets – Here to Help
If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.
The team at Just Lets Peterborough continue to operate remotely to ensure we can continue to serve you and your tenants throughout this covid period and beyond. Please contact us through our usual channels – email us at peterborough@justlets.com or call us today on 01733 346255.
