Landlords generate high returns despite credit crisis


Landlords' portfolios are generating the highest total returns since June 2006, according to Paragon Mortgages.

Rising property values are driving the returns, as rental yields have remained stable for some time despite rents growing in response to tenant demand. Paragon’s October Buy-to-Let Index, shows an average total return for landlords, a combination of rental income and capital gains, has reached 14.2%, up from 12.9% in March 2007. The North of England has seen particularly healthy growth in returns as rents have increased above the rate of inflation and average property value has also grown. The typical landlord with property in the North has generated a gross return of around 21% over the...

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