Commuting pushing up rental returns on property investment
Rental returns are growing at the fastest rate in the UK at around 12.6%.
A sample of average residential property yields showed that in Reading yields now return at 5.48%, up from 4.86% last year, and in the seaside town of Brighton most yields are now presented at 6.17% up from 5.68%.
The average property in Reading is currently slated at £207,934 and in Brighton house prices currently stand at £242,535. Average monthly rents come in at £950 for Reading and £1,248 for Brighton.
Head of mortgages at HSBC Peter Dockar said:
“Landlords are reaping the benefit as young professionals say goodbye to capital city living in favour of more affordable commuter towns. Despite the inevitable increase in commuter costs associated with moving further out, many still feel the move is worthwhile in order to save towards property deposits.”
At Hull Investment Properties we are guaranteeing a 15% return!
Figures are based on recent research by HSBC and from this article in Property Investment News: