More complex types of buy-to-let properties are delivering better yields to investors than mainstream investments, according to Mortgages for Business.
It says that in the second quarter of this year, average annual yields on multi-unit freehold blocks rose to 7.5% compared with a slight fall in mainstream ‘vanilla’ yields, down to 6.1%.
Houses in Multiple Occupation continued to offer investors the highest returns of all, despite yields falling from 10.7% in Q1 to 9.2% in Q2.
David Whittaker, managing director of Mortgages for Business, said: “Although the recipe for economic growth continues to elude the Government, the buy-to-let market is performing consistently strongly and is managing to resist the economic downturn going on around it.
“It is the one area of the property market that is performing well.”