Strong rental yields are being enjoyed by landlords throughout the UK who are making use of buy-to-let mortgages, new research has suggested.
Carried out by BM Solutions, the study revealed 6.1 per cent yields in 2011 were achieved as a result of a 4.8 per cent growth in average monthly rents.
It was demonstrated that demand for such accommodation continued to climb last year, with the typical monthly cost of staying in this kind of dwelling escalating from £682 in 2010 to £716 in 2011.
The highest rental yield for buy-to-let mortgage holders was recorded in the north (seven per cent), followed by the north-west and Yorkshire and the Humber, which experienced a figure of 6.3 per cent.
Phil Rickards of BM Solutions – which is a division of Bank of Scotland – said: “There is a very healthy demand for rental properties across the UK right now, which in part may be driven by the costs associated with buying a home.”
He added these expenses are likely to increase for many as a result of the stamp duty holiday drawing to a close.
