Now is a great time to invest in property, as stagnant prices pick up thanks to the Boris bounce, Sourced Capital claims.
The peer-to-peer property lender said that it is a good time for individuals to invest in bricks and mortar, via their own buy-to-let property or through peer-to-peer lending.
Investors can fund buy-to-let loans through a number of P2P platforms such as Sourced Capital, LandlordInvest and Assetz Capital.
The average rental yield currently sits at four per cent across the UK, but there remains a wealth of property pockets offering yields above and beyond the national average, Sourced Capital said.
“One positive that can be taken from months of stagnant house price growth brought on by Brexit uncertainty is that rental yields have seen a boost due to a fall in property values coupled with consistently high rental demand and rental prices as a result,” said Stephen Moss, founder and managing director of Sourced Capital.
“We’ve already seen a Boris inspired bounce late last year with early signs that the market has ‘bottomed out’ and is once again on the up already in 2020.
“As a result, we’ve also seen an early flurry of investor activity as they realise now is a great time to get a foot in the door and secure a good deal before prices do regain momentum and the returns available start to tighten.
“With the property sector remaining one of the most consistent where investment over the past five years is concerned, we expect to see yet further growth over the year and beyond and whether you choose to invest in your own buy-to-let property or via the P2P channel, now is as good a time as any to commit while the market is still finding its feet.”
Scotland is the nation offering the best rental yield at 5.8 per cent, closely followed by Northern Ireland at 5.4 per cent, with England also coming in just above the average (4.1 per cent).
Regionally, the North East (4.9 per cent), Yorkshire and the Humber (4.5 per cent) and the North West (4.4 per cent) are home to the most favourable rental yields.
Meanwhile, in London, Tower Hamlets is currently home to the highest yields at 4.7 per cent, followed by neighbouring Newham (4.6 per cent) and Barking and Dagenham (4.6 per cent).