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Smaller Is Better When Considering Buy To Let Yields

April 23rd 2013
By: Acquarone
Smaller Is Better When Considering Buy To Let Yields

Smaller properties have been found to produce stronger yields than larger three or four bedroom properties.

Recent industry research based on 50,000 rental properties has found that small one or two bedroom properties achieve a higher average yield than larger three or four bedroom properties. More specifically, the results indicated that one or two bedroom properties achieve between 6.8% and 6.4% respectively when compared with three to four bedrooms which come in at 6.2% and 5.6% respectively.

It is noted that although larger three or four bedroom properties achieve higher rents, that it is the smaller one or two bedroom homes that have experienced the highest year on year rent increases of approximately 3.3%. This figure is underlined when we consider the typically smaller rent increases experienced by 3 and 4 bedroom homes of 2.3% and just 0.3% respectively.

With this having been said, the lettings market has recently been complimented by the national fall in rental arrears in the first quarter of 2013 as well as significantly improved buy-to-let mortgage products which are both very encouraging signs for all investment landlords who are looking to start or expand their property portfolio in 2013.

If you have any questions about your investment or how to make the next step, why not contact one of our lettings specialists in branch who will be happy to help.

Source: http://www.landlordtoday.co.uk/news_features/Small-is-beautiful-for-BTL-yields-says-Countrywide 19/04/13