More investors are taking an interest in the landlord sector as rental yields continue to hold amid the current economic crisis, a property management firm has suggested.

Cullen Property, which is based in Edinburgh, said it has received more enquiries from property investors, because rental yields have held while interest rate cuts have lowered some buyers' mortgage payments.

"While the property market overall is still bottoming out, stronger rental returns have made property an attractive investment option,"said Steve Coyle, operations director at the firm.

His comments come after buy-to-let mortgage lender Paragon Mortgages revealed in its quarterly survey of the private rented sector that the average rental yield increased from 5.7 per cent to 6.1 per cent during 2008.

In addition, private landlords were also found to be predicting that this level would increase to 6.3 per cent over the course of the next year.

This study followed research by Business Development Research Consultants, which found that buy-to-let mortgage holders with larger portfolios were more likely to be making profits.ADNFCR-2002-ID-19033311-ADNFCR

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