14
Dec
Buy to let returns hit 28-month high
Annual returns for buy to let investors hit a 28-month high of 21
per cent this year, it has been revealed.
The return equated to an average yield of £34,500 over the
course of the year, according to figures from buy to mortgage
specialist Paragon.
John Herton, director of mortgages at Paragon, attributed the
improvement in returns to increasing rental income, the continued
strength of house prices and stable yields.
He said: "Both rents and property values have grown strongly over
the past 12 months. Looking forward, we can expect further upward
pressure on rents to continue as first-time buyers remain in rented
accommodation for longer.
"Returns generated by landlords are very good and compare
favourably with alternative investment classes."
The growth in rental yields is nonetheless deemed to be the key
factor driving the rise in returns.
These were up six per over the last quarter and 17 per cent over
the full year.
