We have some good news for tenants as more and more shrewd investors are snapping up buy-to-let properties in order to generate plenty of money for when they retire.
A study conducted by the Mail on Sunday showed that many people are unhappy with under performing pensions and have taken matters into their own hands by purchasing houses and then renting them out.
Interest rates are low, which means savings accounts are not yielding decent returns and in the meantime the private rental sector is booming, so it is unsurprising that so many new landlords are cashing in.
A recent study by Paragon confirmed the number of Britons entering the buy-to-let market has been rising since mid-2009.
The average yield on a buy-to-let home is six per cent and 60 per cent of existing landlords are planning to enhance their portfolios in the next 12 months.
David Whittaker, managing director of broker Mortgages for Business, told This is Money that many property owners are buoyed by the fact house hunters are finding it so hard to secure a mortgage.
"As a result, demand for rental property continues to outstrip the supply, which has pushed up yields," he was quoted as saying.
Article taken from www.rman.co.uk
Image: Lev Kropotov/Shutterstock
Image: Lev Kropotov/Shutterstock
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