Buy-to-let returns beat FTSE All Share

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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 ...

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