Are buy to let yields and incomes set to go up asks Letting Focus?

A new report out from Mortgage Express says that nine out of 10 landlords plan to either increase their portfolio or leave it untouched in 2008 and about 95 per cent think gross rental yields - which are at 5.7 per cent - will stay the same or increase.
Meanwhile, the Council of Mortgage lenders latest set of stats shows that 20.6% of first time buyers income is going on interest payments on property – which is quite high and certainly well above the nadir of 1994 when it was about 11.3% (and property as we now know was as “cheap as chips”)
However, today’s figure is well below the 1990 peak of 27.3% - the last time house prices fell a lot.

Property Crash
For these reasons I don’t really see a big property crash coming – though I do see a choppy time for house prices - which is a situation which will be taken advantage of by clever experienced landlords who will be adding to their holdings now by buying property from financially overstretched sellers.
These smart investors also know that first time buyers, many of whom have been spooked by the headlines of a property slowdown will be renting instead – which is one reason why these landlords know that rental incomes and yields will increase.
If you need more advice on investing in property or buy to let in general please ask me.

About LettingFocus.com
What’s unique about LettingFocus is that I offer independent unbiased
property seminars covering property investment, landlords isues and buy to let because unlike most people in the buy to let and property “advice” business I am not linked to a property company, developer, agent or bridging loan financier.
I can tell you where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to make sure you get tenants who are going to pay the rent and how to manage a rental property to make money.
I can answer most questions on letting property because I have been a landlord and property investor myself for over 25 years.

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House Prices Crash in the UK is Unlikely But Some Areas Will See a Correction says LettingFocus

I’m just back from a short holiday to see there is more gloom in financial markets.
I also see that the news today is that the S&P/Case-Shiller US National Home Price Index fell 3.2 per cent last quarter from the same period in 2006, its sharpest decline since the index was created in 1987.
This was an acceleration from the 1.6 per cent in the first quarter. As this data was collected before the end of July - before the sub-prime lending crisis really hit in August – the falls can only be expected to become more rapid over the near term.
Of course the key to property investment is to buy well and pick locations with care.

Ulster Property Market
I don’t think that house prices will collapse in the UK, though some areas, notably parts of Ulster where I spent the weekend, are in my opinion already too high and due a correction.
In north Antrim I saw two bed terraces on at over £200K.
With rental yields already very low according to my friends over there, I can only see house prices falling back a bit in Ulster. There has been some regeneration it’s true in Ulster, but I think the leap of 50 per cent in house prices in Ulster over the last 18 months or so, is more than enough.

ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the buy to let experts and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
We help you make money in property by showing you and coaching you in the ways that work and which are of minimal risk to you.
I have been a landlord and property investor myself for over 25 years.
At LettingFocus we offer independent unbiased advice for landlords and property investors on a one to one mentoring and coaching basis as well as through occasional group seminars.
Property clubs are property advice in the UK is still mainly unregulated and advice is often poor.
As I am not linked to a property company, developer, estate agency or bridging loan provider I am able to give unbiased independent advice on where and what type of property to buy for investment, when to buy and how to buy property at a low price.
I can also explain how to reduce the risk of getting a bad tenant.

CHECK OUT THESE PAGES AT OUR SITE LETTINGFOCUS.COM:

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Next Property Investing Seminar and Networking Event
We have GREAT OFFERS on a range of products for landlords too, click here: Services and Products for Landlords
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
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CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
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Buy to Let Yields are Good and So is Growth if you Buy in The Right Area and Right Type of Property

I’ve just received the latest set of data from Paragon Mortgages on landlords and how they are doing.
Now the data has to be treated with some degree of caution because it is based just on Paragon’s survey. However, it is fascinating nevertheless.
It seems that following the MPC's second increase in interest rates this year and the fourth since last summer, landlords are responding by increasing rents by more than CPI inflation and by adding to their portfolios of buy-to-let properties.
According to Paragon, average rents on a typical buy-to-let property have risen by 6.5% over the past quarter, from £9,942 in January to £10,591 in April. This compares with an increase in CPI inflation over that period of less than 1%, even taking account of last month's sharp rise in inflation.
I too have also seen strong rises in rents in my patch in London and Kent.
Paragon say that yields are averaging about 6% overall. But be careful here because they are talking gross yields.
I would say you need to take between 1 and 1.5% off to get to yields that are net of running costs. Still, that’s not bad compared to dividends in the FTSE where only a few big firms are still paying much over 4%
The big question is where will prices of houses go next and how will this compare to capital growth on the stock market.
And that’s a big question.

Bumpy Years Ahead
I think there could be a bumpy few years for property but at worst I think prices will fall 10%. But buy in the right area and avoid areas that are hugely oversupplied and you will still do well.
New flats in some of the Northern English towns aren’t my idea of a good property investment – those of you who read my stuff will already know this.
As Paragon’s figures show, terraced houses continue to generate the highest yields, roughly a whole 1% more than flats.
So get houses in the right place where strong tenant demand exists and you will be OK.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of unbiased landlord information.

Hello, I’m David Lawrenson.
I have been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – which has been the UK’s top selling property and buy to let book for the last 3 years.

At LettingFocus.com, we help landlords and property investors make money in property by coaching them in ways that work, which are ethical and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.
Unfortunately, in the UK today, property advice in the UK is still largely unregulated and what counts as “good advice” is too often more about making the promoter money than giving useful information to the investor.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.
We also provide consultancy for banks, local authorities and social housing providers – helping them with their landlord facing or buy to let product strategies.
We have written articles for numerous publications including The Independent, The Telegraph and quality landlord websites.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

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Real House Prices for Free Without The Hassle says LettingFocus

Trying to find local house prices for the street where you want to buy?
Very irritatingly, I've found that most places now either charge or you have to register with the site - and then get bombarded with emails for ever more.
However, there is still one site that's free and simple to use and you don't have to register either. It's the site at http://www.houseprices.co.uk
I like it because it is relatively free from advertising and dead easy to use too.
Simply go there and shove in your postcode and you'll see all the prices local properties have sold for, simply presented.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.
Hello, I’m David Lawrenson.
I’ve been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – the UK’s top selling commercially published property book for the last 3 years.
Primarily, I work as a consultant to banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.
I also write for property websites and am regularly quoted by the media.
I have written articles, guides and documents on letting property and property investing for numerous publications including The Independent, The Telegraph and for quality landlord and property websites.

Services for Private Landlords
For private landlords and other investors in the private rented sector, we do two London seminars each year.
We also find some spare time to help landlords and property investors by coaching them in how to make money in the private rented sector using ways that work, which are ethical, fair to tenants and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For general info on our CONSULTING click here: Consultancy and Seminars
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?

See our TWITTER PAGE: http://twitter.com/LettingFocus