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A dwindling supply of homes for sale is giving buy-to-let investors fresh cause to add to their portfolios, as both prices and rents avoid slipping for the first time in months. Hometrack, the property analyst, said house prices remained unchanged in May – the first time in 20 months that its survey of 1,700 agents did not return a decline. The market for private residences was showing a “short-term boost” in confidence, the analyst said, as their supply was thinning at a time of continued buyer interest. With returns from cash investments still at historic lows, these residences compare favourably for investors, even for only offering a modest return after running costs. Void periods, which can be particularly costly for new investors, appear less likely in some areas, partly as the supply of private rented accommodation has started to slow. Findaproperty.com, the property website, hinted the only marginal growth of the lettings market saw rents avoid month-on-month falls for the first time since August. The Financial Times also reported that the gross return on houses in the second quarter this year increased to 5.1%, compared with 4.8% in the quarter before. Figures cited by the paper, from the Association of Residential Letting Agents, show that yields over the same period for flats rose from 4.9% to 5%. Although barely noticeable, the higher yield for landlords with flats could reach a reported 7% next year, says Hometrack, on cheaper properties that are still likely to fall in value. Jun 15, 2009 Email this article Printer friendly page Previous Page
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