Buy-to-let landlords saw 'healthy' returns in 2007
Published: 15-Feb-2008
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Buy-to-let returns increased significantly over the course of last year.
That is according to the latest bi-annual review from Birmingham Midshires, which comprises both national and regional-level rented property prices and values.
The review revealed that in the period of December 2006 to December 2007, buy-to-let investors saw an average total return of 16.3 per cent, representing an increase of 2.8 per cent on the figure for the previous year.
It was also discovered that the average buy-to-let property price rose to £154,795 last year.
Tim Hague, managing director of mortgages at Birmingham Midshires, said: "Total gross returns in the buy-to-let sector were a healthy 16.3 per cent in 2007. Buy-to-let house price growth has edged higher over the past year. Rents continue to rise across the country, boosting returns.
"The fundamentals underpinning the buy-to-let sector are sound. They include strong demand from higher immigration levels and housing affordability concerns for first-time buyers."
"However, we expect house price growth to be more subdued in 2008, largely reflecting the impact of higher interest rates."
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