Landlords 'can look forward to bigger returns in 2010'

News Category: Industry News

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Landlords will make an average £16,000 in their annual returns next year, a new study forecast.

Research carried out by LSL Property Services, the UK's largest letting agency, predicted that rental income would stand at around £8,000, with capital gains reaching a similar amount.

David Brown, commercial director at the letting agency, told the Scotsman that a likely fall in the number of rental properties will mean bigger profits for them next year.

"Buy-to-let is an essential part of our housing market – we need well-capitalised, experienced, professional landlords," he added.

"With returns rising, they can once again look forward to investing more in the sector to meet our housing needs."

Earlier this week, Chris Horne, editor at website Property Hawk, said that landlords were beginning to feel slightly more confident about the state of the private rented sector.

He stated this was due to a combination of factors, including strong tenant demand, a reduction in supply and low interest rates.

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