During the downturn the property market has received a lot of bad press with headlines focusing on falling values but this has had a positive impact on the rental market which is driving high levels of tenant demand.
Figures released by buy to let mortgage specialist, Mortgages for Business, show that gross yields on all types of buy-to-let property increased in the third quarter with yields on Houses in Multiple Occupation (HMO) seeing an increase from 9.2% to 11.1%.
Commenting on the recent figures, Paul said, “Buy-to-let mortgage holders are certainly enjoying larger profits at present and HMO properties are performing particularly well.
“Although the national figures look good, Empire’s portfolio of 130 units which is based around Doncaster, Leeds and Sheffield have a typical yield value of 20% and we are happy to be outperforming the market.
“One of the services we offer at Empire Property Concepts is consultancy advice based on my experience and the HMO model we have developed at Empire. We have seen a five-fold increase in enquiries from existing investors looking to increase their portfolios and investors who are new to the market, as people are coming to realise that buy-to-let, and HMO properties in particular, offer a strong investment model.
“The market could hardly be better, it’s like an inverse perfect storm. Low capital values mean that investors can acquire property more easily, typically at a higher loan to value ratio as lenders are able (and happy) to advance more when prices are lower, development costs are down and there is a huge amount of demand for these properties.”