Competitive new home rental yields in Maidstone

Date:

Friday 10th June 2011

Property investors seeking to add to their property portfolios may wish to check out a collection of new homes in Maidstone by Redrow Homes, which could potentially yield annual rental returns of around 6%.

With easy to maintain new build homes often appealing to professionals looking to rent, Redrow Homes believes that the selection of two bedroom homes and three and four bedroom townhouses available at its Sutton Woods development in Maidstone will prove popular with investors.

Mike Allen, sales manager at Maidstone based Sandersons Residential, said: "Houses are very popular with renters in Maidstone as they are generally more spacious than apartments and have added outdoor space, so the two, three and four-bedroom homes at Sutton Woods fit the bill in terms of investment potential.

Allen insists that there is strong rental demand in the area from professionals, due to its close proximity to Maidstone East station.

He added: "In terms of the rental values being achieved in the area there is potential for one-off cash investors to get a higher return on their savings than if they leave their money in the bank. We are currently seeing buy-to-let purchasers achieving yields of between 5.5 and 6%, which is very competitive. And of course, if property prices rise, there is the added bonus of capital growth."

Research shows that more landlords are currently looking to adding to their buy-to-let portfolios.

The latest quarterly Landlords Panel research from BDRC Continental in partnership with the National Landlords Association shows that nearly half - 49% - of landlords believe demand for rental property from tenants has increased in recent months, with the majority of landlords optimistic about the future.

Additional research by LSL Property Services plc reveals that 52% of landlords have seen a rise in tenant demand and 68% expect demand to grow further in the next twelve months.

David Newnes, estate agency managing director for LSL Property Services plc, comments: "Optimism among landlords is not only buoyant, but increasing. Soaring rents and climbing demand from frustrated first-time buyers are not only making buy-to-let an attractive proposition for new property investors - but are encouraging existing landlords to grow their holdings before property prices increase once more."