20 December 2011
Rental yields rise for landlords
The latest RICS Residential Lettings Survey reports rising yields on rental properties as a result of increased tenant demand and rising rents.
According to the survey, in the three months to October, 15% more chartered surveyors reported rental yields rose rather than fell. This is the seventh consecutive quarter that yields have increased and reflects the imbalance between rental demand and supply which is continuing to push rents higher.
Perhaps unsurprisingly, after experiencing rising rental yields, fewer landlords are opting to sell at the end of a tenancy agreement.
From a regional perspective, rents in London picked up at the fastest pace, while they rose more modestly across the North, the South East, the Midlands, Scotland and Wales.
RICS spokesperson James Scott-Lee said “despite a measure of resistance to rising rent levels from tenants, in some parts of the country the imbalance between demand and supply for rented property suggests that for the foreseeable future landlords will have a good if not increasing return on their investments in comparison with other mainstream options”.