Buy-to-let hotspots where you can earn an inflation beating income

Buy-to-let landlords can secure close to double-digit returns in certain parts of the UK, with yields of 8% or higher in areas around Glasgow, Scotland, according to data from property portal Zoopla. While yields in some affluent London boroughs are lower, they have still seen significant increases in the past year. Rising mortgage rates and stringent regulations are prompting many landlords to sell their properties, leading to increased scarcity of rental properties and higher yields in certain areas. However, despite the potential for high yields, landlords are facing challenges such as rising running costs and new energy efficiency standards. Rising interest rates are also making it difficult to achieve a good return on investment, with some experts suggesting that buy-to-let is no longer a profitable option in most areas.

thisismoney.co.uk

Relevant topic timeline:

8/25/2023

Mortgage rates soar above 7%, reach 22-year high: Freddie Mac

Mortgage rates have reached a 22-year high and are expected to continue rising, which will further challenge affordability and slow home sales. Additionally, the high rates are increasing the number of all-cash buyers in the housing market. On the other hand, rents have decreased for a third consecutive month, providing some relief for renters.

9/18/2023

Rent Growth Cools as Vacancy Rates Rise and Landlords Offer Concessions

Landlords are offering incentives to attract renters in the US housing market, even though the median asking rent is at a near-record high, with some landlords providing one-time discounts or a few months free to renters, which effectively lowers rents in certain areas, although this may not be reflected in asking-rent data. The rental vacancy rate has increased, leading to more vacancies for landlords to fill, and landlords are raising rents for existing tenants but not new tenants, in order to maintain high asking rents while strengthening returns. Demand for higher-end properties is declining, while more affordable units are in demand. The rental market varies across regions, with the West and South experiencing decreases in median asking rent, while the Midwest and Northeast have seen increases.

9/21/2023

Rising Rents and Shrinking Supply as Landlords Exit UK Housing Market

The Yorkshire buy-to-let market is experiencing an exodus of landlords due to higher borrowing costs and various pressures, resulting in a shrinking rental market and increased rents, causing difficulties for tenants and forcing younger people to live with their parents.

Topics

Posted 9/2/2023, 8:50:09 PM