Summary
In this issue of RAPID we compare the average yields achieved from four types of residential investment at auction to the average buy-to-let mortgage and easy access saving rates available over the same period. We also look at recession recovery, and identify the pattern of recovery following the last major recession. Finally, we perform a new build study for several of the major UK city centres.

Highlights of Issue 5

• Average AST yields exceed 8% as net savings rates plummet.
  
  
• Gross Income returns from ASTs on average 142 basis points above typical BTL mortgage rates in January 2009.
  
  
• Price falls on 3 bedroom houses at auction of up to 32% in South West and on 2 bedroom flats up to 27% in East Midlands since H1 2007.
  
  
• Volume of new build flats offered at auction rises to 628 in Q4 08 with most marked increases in London. Falls from prices paid average 46% across the UK.
  
  
• Although measured capital gains not anticipated before 2011, fundamental case for longer term investment in residential is now persuasive.