Buy-to-let rental yields rose to 6.93% in the third quarter of 2024, rising from 6.53% in the same quarter the previous year, UK Finance data shows.

Fixed rate mortgages are growing more popular, as there were 1.4 million fixed rates outstanding, up by 3.3% year-on-year.

Contrastingly the number of variable rate loans outstanding fell by 14.9% to 541,488.

Melanie Spencer, sales and growth lead at Target, said: “Given the challenges surrounding the buy-to-let market, it’s encouraging to see a year-on-year increase in lending in Q3. Of course, the data captures the market prior to the Budget and the changes to stamp duty on additional properties.

“However, the market has been resilient and landlords have remained agile, capitalising on a challenging residential market and exploring opportunities further afield to expand their portfolios.

“There will always be those that will choose to sit back and not expand due to market conditions or policy changes, but conversely there are those still making the most of the opportunities in the market.

“After all, demand for good rentals remains high as does rents and the yields available to landlords.”

The average interest rate across all new buy-to-let loans in the UK was 5.22% in Q3 2024, 0.03% higher than the previous quarter but 0.09% lower than the same quarter in 2023.

There were 710 buy-to-let mortgage possessions taken in Q3 2024. This is unchanged from the previous quarter, but is still 73.2% higher than the same quarter a year previously.

Via @PropertyWire