How Landlords are Maximising Yield

As Interest rates increase, many landlords are looking at ways in which they can maximise the yield their current and future property investments produce. 

In this article, we explore just a few of the options available to landlords:

Developing current property – Landlords may consider further developing their current investments, this might include structural changes to the building in order to create more space. Talk to our brokers about raising funds for extensions and loft conversions via a remortgage or second charge loan.

Securing competitive rates – Those still on variable or tracker rates may wish to consider long-term fixed rates to protect themselves from future uncertainty and the next possible interest rate rise.

Exploring Property Types – When looking to maximise rental yields, a growing number of landlords are carefully scrutinising the pros and cons attached to HMOs. The appeal of this investment type was highlighted in Q4 2021 Landlord Panel research from BVA BDRC. Data within this report outlined that HMO lettings currently achieve the strongest yields at 7.5%.

Student accommodation Data from Paragon showed that student properties generated yields far outperforming the broader private rental market. Recent data from UCAS and UniHomes reveals that university applications from 18-year-olds have reached their highest levels in almost a decade. With a record-high number of university applications, the student property market offers attractive benefits for investors looking to achieve high yields and strong demand.

If you would like to discuss options available to you, speak to a member of the team or our senior broker, Danny O’Keeffe on 0208 364 3444 alternatively schedule a call back by clicking on the button below.

Dudley BS becomes latest lender to pause mortgage applications
Dudley Building Society is temporarily withdrawing all mortgage products available to its intermediary partners. Dudley is the latest in a series of lenders to temporarily pause mortgage applications due to high demand.

Earlier this week, Gatehouse Bank withdrew its buy-to-let and home finance products, following both Suffolk and Saffron building societies and also Platform.

Mortgage approvals increase in July despite rising rates: BoE
Mortgage approvals increased to 63,800 in July, up from 63,200 in June, according to the latest Money and Credit statistics from the Bank of England. Experts claim these figures reflect a resilient mortgage market. Despite recent interest rate hikes, the cost-of-living crisis and inflation running at historic highs.

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