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TODAY'S OTHER NEWS

Buy-to-let in rude health ahead of tax crackdown

The buy-to-let market remains in good health ahead of Chancellor George Osborne's tax crackdown, with stable yields and strong tenant demand.

Four out of 10 landlords report increased tenant demand in the third quarter, according to the survey of nearly 2,000 landlords commissioned by Paragon Mortgages.

Annual rental yields have held the same throughout 2015, with an average return of 5.6% across the UK.

Paragon also found that 17% of landlords reported yields of between 3% and 4%, while one in 10 earned 10% or more.

Yorkshire and the Humber reported the highest Q3 yields in Q3 at 6.1% with the lowest in outer London at 4.8%, despite strong demand from tenants.

John Heron, director of mortgages at Paragon, said: “This research shows that yields and tenant demand have remained strong throughout 2015.

“Q3 data shows London and the South East slowing somewhat, while yields in the regions are growing.

“This represents a welcome rebalancing of the national economy.”

The market is now waiting to see the impact of Osborne's changes, to be phased in from April 2016, which some fear could destroy buy-to-let as an investment.

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