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High returns on buy to let mortgages

31/05/2007

NAEA, National Association of Estate agents have stated that there is a high rental demand in the buy-to-let market, this an advantage for new potential investors.

However to the NAEA tough inward migration and harder employment is offering to continuous demand for rental offers in the United Kingdom, in calculation to demand from would-be homebuyers who cannot maintain homes in expensive regions.

Due to these high advantages, most landlords have been receiving good returns and comfortable yields, even though there have been more new investors joining the buy-to-let sector and more houses getting built. At NAEA Jan Bartlett spoke further about the appeal of new builds to current tenants.

"A high percentage of buy-to-let investors purchase new-build properties, which attract higher than average rental yields due to their quality and desirability," it was claimed.

"Young professionals are prepared to pay a premium to rent new build property which they otherwise might not be able to afford."

However, the National Institute of Economic and Social Research feel that Buy to Let Mortgages could turn out to be insecure in the coming years.


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