City centre landlords are cashing in as surging tenant demand means yields have jumped this year.
So far in 2021, the average investor purchasing a buy-to-let in a city achieved a gross yield of 5.3pc, according to Hamptons estate agents. This was boost of 0.6 percentage points from 2020, when returns slumped in the wake of the pandemic.
This being – or at least could be – neatly explained by capital values having declined by the necessary amount. Yield is, after all, rent as a percentage of that capital value……falling prices not being the usual background to people “cashing in”.