The buy to let market is now a market worth returning to for investors, as returns are increasing to as much as 8%. Southampton is strong in this regard with a yield on buy to lets of 8.12%, according to Findaproperty.com. Following Southampton is Leeds in West Yorkshire with return of 7.52% and Virginia Water in Surrey seeing a yield of 7.5%.
Nigel Terrington, with the buy to let lender Paragon, commented on the success of the sector for the first quarter of this year, saying: “Landlords in the private rented sector have enjoyed a buoyant start to 2011, with growing levels of tenant demand, rising rents and strengthening yields.”
The strong yields are not the only successful aspect of the sector. A 62% increase over last year in the number of buy to let applications has been reported by the mortgage broker TBMC.
With strong demand from tenants predicted to continue over the next several months, analysts believe the buy to let market will stay on its successful track for some time.
The research done by TBMC the last two quarters indicate landlords have been primarily buying buy to let properties in London, Portsmouth and Brighton.
Due to higher yields, the buy to let market is garnering more attention. The market therefore has become more competitive, especially within the group of amateur landlords.
As banks see yields within the buy to let market increase, there is a new effort among lenders to assist those who are credit - worthy and help them take advantage of profitable opportunities.
David Whittaker, of Mortgages for Business, believes Whiteaway Laidlaw will improve the ability for a select group of landlords to add to their portfolios.
