Ever since restrictions on tax relief on buy-to-lets were introduced in 2015, private landlords have been selling properties more than investing in them. A harsher tax and regulatory regime, until recently combined with soaring house prices, had pushed down yields.
As mortgage rates start to fall, rents are set to increase further, so financial pressure on landlords will ease, leading to higher yields. Spikes in renovation and repair costs, due to material shortages caused by the pandemic, are finally stabilising too.
News source: The Times and The Sunday Times