15
Dec-2007

UK Buy to Let landlords enjoy a bumper year

Strong tenant demand could mean more people looking for buy to let mortgages in the new year

According to the latest figures contained within Paragon Mortgages Buy-to-Let index, the annual return on buy to let property over the past 12 months is as high as 25.1% in some places, (this is a combination of capital gain and rental income). This percentage return, coupled with the strong demand for rental accommodation is something no potential property investor can ignore and will perhaps spark a rush to find the best buy to let mortgages in the marketplace early in the new year.

Rising rents mean gloom for tenants but joy for landlords

Over the past twelve months, Paragon estimate rents have risen by an average of 6.9% standing at an average of £10,718. This is not great for tenants, especially those who are fed up with renting and want to move on to the property ladder. Coupled with the gloom of not being able to afford to buy a house, now they have to look forward to landlords raising the rents, especially as more and more people find it hard to keep up with mortgage payments after multiple interest rate raises over the past 12 months.

Mercy Mr Rigby please…

Perhaps UK Landlords will have mercy on those who rent and keep monthly rents down. Perhaps they will have found a very very good buy let mortgage deal and so generously decide they don’t have to bleed their tenants dry. You never know, it could happen, but I wouldn’t hold my breath, at least not for too long.

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  1. bloggingzoom.com /

    UK Buy to Let landlords enjoy a bumper year • s t i r l y n – e a r t h m o n k e y…

    Over the past twelve months, UK buy to let investors, those who buy property to let rather than refurbish and sell on for profit, have enjoyed an annual return of up to 25.1% according to one major buy to let lender. Growth figures this large, don’t s…

  2. Upcoming Property Auctions | Stirlyn /

    […] you are looking for your next buy to let property you could pick up something over the next few weeks that will start your year off […]

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