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Landlords see up turn in profits

Date: Mon, 11 Apr 2005

A slowdown in the housing market has helped increase profits for those renting out properties, according to specialist broker Landlord Mortgages.

Landlord Mortgages' latest reports shows that Scotland recorded the largest increase with rental yields increasing from 6.88 per cent in the final quarter of 2004, to 7.37 per cent in the first three months of 2005.

London also showed strong growth over the same period, with an increase from 5.96 per cent to 6.08 per cent.

Lee Grandin, managing director of Landlord Mortgages believes that many potential first-time buyers are choosing to rent whilst waiting for house prices to fall.

"We believe this reflects a cooling housing market coupled with strong rental demand," said Mr Grandin.

"We believe that the buy-to-let market will continue to remain stable in 2005 and is likely to exhibit further gains."

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