Buy-to-let yields rise by 10.6%
Buy-to-let yields have gone up
Tuesday, 16, Mar 2010 04:00
Annual buy-to-let yields rose by 10.6 per cent in February to reach a two-year high, research has indicated.
In addition, the average rent rose by 0.3 per cent and has increased by 3.2 per cent in the past year, the figures from LSL Property Services have shown.
However, Alan Ward, chairman of the Residential Landlords Association, warned the industry: "If the Planning Use Classes Order takes effect in April, the rental market will be wrecked for landlords wanting to offer property to sharers like nurses, young professionals and students."
The Planning Use Classes Order will look to control the spread of high concentrations of shared rented homes and will also seek to tackle pockets of unsafe and substandard accommodation run by bad landlords.
These proposed changes will require landlords to apply for planning permission in order to establish a new HMO (houses in multiple occupation) with a change of use.