logo
倫敦 icon
icon 倫敦 icon
新聞與資訊
Rental Yields for Property Investment Rise to 5.8%
四月 15, 2024
Rental Yields for Property Investment Rise to 5.8% 倫敦
By   Internet
  • 城市報
  • Buy-to-let
  • rental income
  • property investment
  • UK housing market
Abstract: The latest data shows that the average rental yield for property investment has increased from 4.9% to 5.8%. This growth is primarily attributed to an increase in rental income, despite a decrease in initial startup costs, while operational costs have risen by 18%, mainly due to the impact of mortgage interest rates.

The yield from purchasing properties for rental purposes is on the rise, with analysis from professional lending institution Octane Capital indicating an increase from an average of 4.9% over the past two years to 5.8%.


Over the last two years, rental income has increased by 19%, now totaling £15,144 per year. Meanwhile, initial startup costs associated with property rental have decreased by 17%, from £12,037 in 2021-22 to £9,952 today.


However, due to the rise in mortgage interest rates, operational costs have increased by 18%, reaching £15,592 per year.


Jonathan Samuel, CEO of Octane Capital, commented: "Landlords have benefited in recent years from healthy levels of rental income. While capital appreciation of properties may have slowed, their investments continue to yield significant returns even in the current volatile market environment."


Rental Yields for Property Investment Rise to 5.8%

propertywire.com


"Of course, higher operational costs, particularly the rise in mortgage interest rates, have constrained overall net returns. However, in the current economic climate and amid the uncertainty experienced in the property market in recent months, the decrease in net profit is relatively modest."


"There are still many opportunities for investors purchasing properties for rental purposes to reduce borrowing costs, and utilizing professional lending institutions is the best way to access these opportunities."


"It's worth noting that the government's plans to digitize taxation may add additional costs. Although initial startup costs are around £350 and ongoing costs are approximately £110, this is unlikely to dampen investment interest."


"While the government also hopes to attract more landlords to exit the industry by reducing capital gains tax, our research indicates that despite a slight decline in profits, this remains a profitable endeavor."


The main negative factor for investors is a 6% annual decline in capital appreciation, falling to £15,728 per year. This results in a 6% year-on-year decrease in returns, amounting to £15,280 per year, which is lower than the £16,285 per year from capital appreciation and rental income (taking into account ongoing costs associated with property investment for rental purposes).

留言
icon
請輸入您的國籍
+87
不能為空
電子郵件地址無效 電子郵件地址未驗證!
icon
歡迎訪問 House.com
登錄或註冊以充分利用您的體驗。這也將增加您與經紀人交流的機會。
請輸入有效的電子郵件地址。
繼續使用 Google
提交即表示我接受House.com的   使用條款
icon icon
驗證您的電子郵件
你好 我們剛剛將驗證碼發送到您的電子郵件中。 請檢查並在此處輸入驗證碼以繼續登入。
驗證碼錯誤
沒有收到電子郵件? 請檢查您的垃圾郵件資料夾
icon
banner
Rental Yields for Property Investment Rise to 5.8%
icon 複製鏈接
icon WhatsApp
icon Facebook
icon Twitter