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| CURRENT SECTION :: Money News | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
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The first sign of stability has emerged in Britain’s housing market, where rental yields for buy-to-let properties have held steady at 6.4% for the second month running. Although gross yields – rent as a percentage of a property’s value – have climbed since November 2007, they have now stabilised just short of £1,000 a month. But months of strong demand from tenants has kept average rents 9.3% higher than a year ago, helping landlords offset the costs of falling house prices and rising mortgage fees. Properties in Wales, the North and the North West achieved the highest yields in June, reporting 7.6%, 7.4% and 7.3% respectively, according to Paragon Mortgages index. Across the UK, the index also showed that terraced houses are now commanding the same premium yield of 6.9% that detached houses provide. Rental demand for these smaller properties was explained by would-be first-time buyers feeling anxious about falling houses prices and so choosing to delay their purchase. However the yields provided by flats, which have risen 3% since a year ago, fell in June by 0.3% compared with the previous month. As expected, the average values for all types of investment property slipped over the same period by 1.1%, and now stand at £185,552. Still, the average property bought 12 months ago has generated an overall return of 13.6%, taking into account both capital gain and rental income. Aug 4, 2008 Email this article Printer friendly page Previous Page
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