LandlordToday reports that in prime central London the demand for buy-to-let (BTL) property has increased in recent months – with the trend looking set to continue throughout 2019 as rental yields improve.
The latest data shows that rental yields in prime central London are currently at a six-year high, which may be an attractive proposition for buy-to-let landlords.
Citing data from Black Brick buying agency and Knight Frank’s Prime London Lettings Index (December 2018), the figures show that:
- in December, the average rental yield achieved in prime central London was 3.35% – the highest level seen since April 2012;
- letting activity across prime London markets has remained firm with the number of new tenancies in November 2018 increasing by 12.3% in comparison to the corresponding period in 2017;
- average rental values in prime central London increased by an average of 1.1% in December in response to falling levels of supply, prompted by landlords seeking to sell their properties in response to recent tax reforms.
There is a suggestion that rents will rise further this year, with number of new prospective tenants registering in prime central London increasing since the start of the year, while supply falls.
A Black Brick spokesperson said: “We are seeing something of a resurgence in buy-to-let enquiries compared with a year ago, and we are sourcing deals offering yields between 4-5% … With rents set to rise perhaps 15% over next five years, this part of the market should see a bounce”.