Property consultancy Savills believes that while transactions and price growth will continue in 2022, it will be tempered by the exceptional growth we’ve seen this year, even more so if interest rates start to rise sooner than expected.
Toks Adebiyi, founder and chief executive of property management company Clooper, said: “Rental yields can change from postcode to postcode, so it is important that landlords conduct thorough research into potential investment outside their current property portfolio locations, to ensure they achieve maximum yields.”
He added: “For example, in Manchester, Leeds, and Birmingham, certain postcodes are hitting yields of between 6-12%, as property prices are considerably lower than the South East. Currently, the average UK rental yield is sitting at 3.63%, so anything over that amount can be considered a high rental yield area.”
He believes landlords considering expanding their portfolio into 2022 have the opportunity to acquire highly profitable properties next year, despite looming interest rate rises and potential issues with finance. The good news, he adds, is that there is an ever-increasing demand for rental properties across the UK.
“Recent research shows that almost 40% of landlords have reported increasing tenant demand throughout the past three months – the highest level since 2016,” he continued.
“A further 18.2% said this has grown significantly, while 20.3% stated they have witnessed slight increases. This is according to a survey of more than 750 landlords carried out by BVA BDRC on behalf of Paragon Bank.”
Source: PropertyInvestorToday