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The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

Connecting The Rental Market

David Walker, Head of Property, Hyperoptic comments

Last year, the commercially held UK residential property market returned a 14.7% yield, higher than any other major European or North American market. However, recent reports have outlined a decline in yields across most of the country, as rents fall behind the increase in property prices.

The weight of money in the capital markets, and the growing recognition of the residential sector as a valid asset class for institutional investment, has been well recognised. With central government backing the economic environment, the pumps have been primed on the PRS (Private Rented Sector) to help with the annual deficit of new builds seen year on year.

The key to a good rental yield is a strategic approach to your audience. It is an undeniable fact that 'DINKYs' are the most lucrative market. These 'Dual Income, No Kids Yet' couples are the most economically active segment in Britain, and are usually found in city centres, in privately rented flats.

If you were to compare today's DINKYs with those five years ago, you'll find one big principal difference - this generation is digitally rich, with an average of five devices that they use every day. Connectivity is king. Without it, they will delay move-in until their broadband connection is live, or they may discount the property entirely. It is the backbone to their entertainment and social life, not to mention a lifeline to their office. This must be recognised in any rental model for it to succeed. 

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