UK / Rate rises bite into buy-to-let rental yields

strange when you can get "4,5% - 5% in rsik free gilts...."

schon merkwürdig wenn man zwischen 4,5- 5% in risikofreien uk staatsanleihen erzielen kann......

"Rate rises bite into buy-to-let rental yields"

Landlords’ profit margins are falling as a result of rising interest rates, while the number of new properties coming onto the lettings market is slowing.

... according to the Royal Institution of Chartered Surveyors (Rics) which revealed that net yields before tax have plummeted to 3.25%.

The slowdown was skewed primarily towards flats as buy-to-let investors expressed caution in the market, says the report.

‘The recent interest rate increases have painted the buy-to-let market as a less than favourable investment,’ said Jeremy Leaf of Rics. ‘With profit margins potentially reduced, affordability conditions could bite hard into investors’ pockets and push up rents if interest rates rise further in 2007.’

....Surveyors expect rental levels to rise further, though confidence has edged back slightly after reaching record levels.

Gross yields are in decline and were 4.6% in October compared with 4.8% a year ago. After costs this would equate to a net yield before tax of around 3.25%.

and they yields in the "commercial property market /london " are not much better....../ im gewerblichen bereich sieht es kaum besser aus........

....Tenant demand for rental property remained solid this quarter, although the pace eased back compared to the previous three months. Continuing demand from tenants reflects a combination of factors, including a strong economy and rising migration.

Chartered surveyors report that migration from eastern Europe has impacted upon the demand side of the market as demand exceeded supply for a 10th consecutive quarter, putting upward pressure on rents. The slight reduction in tenant demand – especially for flats – is evidence that some would-be first-time buyers have been able to purchase a property. (been able to purchase..... i think this chart is misleading......./mhhh, dann ist dieser chart wohl verkehrt.....)