[buy-to-let news] Rental Yields Hit 10-Year High: Landlords Earn 6.3%

Discover how landlords are achieving a 10-year high in rental yields, averaging 6.3% annually on property investments, per Foundation Home Loans.

Landlords are reportedly raking in an impressive 6.3% annually on their property investments, as revealed by a recent report from Foundation Home Loans. On average, property investors are borrowing around £665,000, which translates to approximately £125,000 for each buy-to-let mortgage. Interestingly, those savvy portfolio landlords are often borrowing well over the £1 million mark.

In the face of a challenging market landscape, these landlords are not merely surviving; they are finding innovative ways to sustain profitability and even expand their portfolios. With average rental yields on the rise, a growing inclination towards limited company ownership, and a robust demand from tenants, the trends emerging are decidedly encouraging. These factors present mortgage advisers with a golden opportunity to secure business and assist landlords in navigating the complexities of the market.

However, amidst this optimistic outlook, a mere 10% of landlords express intentions to enlarge their portfolios within the next year. Their concerns are not trivial; the looming specter of potential rent controls and the proposed abolition of Section 21 are at the forefront of their worries.

This insightful research is encapsulated in the Q2 2024 Landlord Trends report, meticulously conducted by Pegasus Insight and disseminated by Foundation Home Loans. The findings are based on 799 online interviews conducted with landlords during the months of June and July, painting a comprehensive picture of the current state of the rental market.