Average rental yields for landlords are at their lowest level for five years
Mortgage repayments are the biggest outgoing for a large proportion of landlords, and average rental yields are at the lowest level (5.7%) for five years, according to research by the National Landlords Association.
The data shows that two thirds of landlords have buy-to-let (BTL) borrowing on their lettings portfolio, and that those with a buy-to-let mortgage spend 28% of their rental income on meeting repayments.
Landlords also said they spend on average 11% on maintenance, and 6% on each of agents’ fees, furnishing and insurance.
Carolyn Uphill, NLA chairman, said: “These figures show how significant a business cost mortgage repayments present for the average landlord and demonstrate why the Budget will be such a blow for many. With the average rental yield at its lowest level for five years, landlords need to plan their finances carefully to ensure they do not end up running at a loss.
“We offer services such as NLA Rent Manager, an online software solution, which can help landlords better manage their finances by organising and tracking important aspects of a rental business.”
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