The decline has in part been attributed to the healthy capital appreciation that investors have enjoyed, with the cost of the average property increasing by 66 per cent over the past 5 years.
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In spite of Novembers interest rate rise, confidence is higher this quarter than in the previous one and so are rental yields. However Lee Grandin, managing director of Landlord Mortgages believes: Investors need to be less concerned with high rental yield figures and more concerned with achieving sufficient rental to cover their mortgage repayments.
Landlords expect that through both the capital appreciation of their existing portfolios and the acquisitions they are planning to make over the course of the next 12 months, they will see a 2.6 per cent rise in the value of their assets.
John Heron, managing director of Paragon Mortgages comments: Existing landlords know that the social and demographic factors driving growth in demand for rental properties will continue unabated, and their expectations reflect this.
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