Returns for landlords increase in first quarter of 2008
Published: 03-Apr-2008
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The first quarter of 2008 has seen an increase in returns for buy-to-let investors, new figures have revealed.
According to the quarterly Arla Review and Index, which was published on Monday (March 31st), the average return on a mortgaged investment has risen by 0.27 per cent to reach 21.7 per cent.
It was also revealed that returns on cash purchases now average 10.91 per cent.
Arla said that rental demand has been driven by immigration, noting that since the end of 2006, there has been a ten per cent increase in the number of buy-to-let investors reporting a significant impact on the rental market due to immigration.
Ian Potter, Arla operations manager, commented: "There can be no doubt from these figures that buy-to-let landlords are well aware of the opportunities but behave with caution.
"In fact, caution has been the watchword in the buy-to-let market since itsinception. Buy-to-let remains the sustainable option for housing."
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