Annual returns from buy-to-let investment properties have reached a 28-month high, significantly outperforming the FTSE All Share Index, according to Paragon Mortgages.
Paragon says the latest rate cut by the Bank of England is a positive factor for landlords, but says it is unlikely to change investor behaviour as demand for rental property is expected to underpin the market in the coming year. Paragon’s latest Buy-to-Let Index shows average total returns for buy-to-let investors reached 21% in 2007. During the same period, the FTSE All Share Index rose by just 7.4%. The Index estimates the average landlord made more than £34,500 over the past year. Strong rental income, stable yields and high house prices have all contributed to growth, according to ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes