Buy-to-let yields have hit a record low, fuelling fears that property investors will sell up. Nationally, gross rental yields are already at a record low of 4.38%, as house prices have climbed more quickly than rents. Research consultancy Capital Economics has forecast that by the end of 2022 yields will hit a new low of 4.26%. As interest rate rises push up land lords' outgoings, next year the margin between rental income and mortgage costs will become the most squeezed it has been since the financial crisis. |
The Daily Telegraph (18/06/2022) |