PROPERY TYPES
Property Types Yields Ever-popular because of their consistent performance and relative ease to finance, yields from vanilla properties have remained stable at between 5-6% since 2015. HMOs continue to produce the highest yields despite hitting a low of 7.7% in the last quarter of 2018. This could be due to landlord inertia in the run-up to the Christmas holidays and a waitand-see approach regarding Brexit. In Q1 2019 yields bounced back to 8.9% despite no resolution to Brexit. Also bouncing back since returning an all-time low yield of just 5.7% in Q4 2018 were multiunits which produced an average yield of 7.1%.
cannot be financed with a buy to let mortgage because of the commercial element. They are included in the index because of their dual purpose and because they are popular with more experienced landlords and those looking to move into commercial property investment.
Loans to Values There has been little change in the LTVs across all types of property except SCPs which is due to a smaller data set. Loans to values for vanilla, HMOs and MUFBs have remained relatively constant between 69% and 70% for the past year.
Yields from semi-commercial properties (SCP) fluctuate more widely because of the smaller dataset although they typically perform better than vanilla properties. In Q1 2019 they produced the highest yield of any buy to let property type(10%). It should be noted that SCPs
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