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Monday, June 21, 2010

Buy-to-let rental yields

The latest figures from the LSL Property Services suggest that buy-to-let yields may be rising as rents rise faster than house prices.

Property rents according to their figures have risen for four successive months and are now 2.7 per cent higher than May 2009 at £667pcm.

The house price of the average rental property picked up 0.1 per cent compared with April 2010 and 8.6 per cent year on year.

Rental yields
are an important measure for landlords and property investors as they measure the underlying relationship between the capital value of a residential investment and the amount of cash in terms of rent that the investment generates.

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