Housing hopes - 2004-03-18
The London residential property market has wronged the bears, recovering significantly from price contraction in 2003.
The rental market experienced a torrid period in 2002 and most of 2003. Gross rental yields are 4 to 5 per cent and net yields after management fees and estimated 'voids' - periods in which the properties are unlet - have fallen to only 2 to 3 per cent, according to Savills. This compares to bank rates of 4 per cent and mortgage deals of around 5 per cent.
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