16-07-2007
Buy-to-let investment returns increase
Buy-to-let investment returns have increased when compared with 2006, it has emerged.
According to research released by Birmingham Midshires, over a 12 month period to June 2007, buy-to-let investors have generated average returns of 13 per cent.
However, as a result of rising mortgage costs, Birmingham Midshires cautioned that it expected the market to slow.
"While house price growth in the sector is expected to be more subdued near term … the potential for further increases in rents should encourage long-term investors," said Tim Crawford, group economist at Birmingham Midshires.
"[However,] buy-to-let house price growth has edged higher over the past year, while rents continue to rise across the country, boosting returns," he added.
The average level for rent is currently £651 per month, according to the bank.
Simply Business works with a panel of buy-to-let mortgage providers to give its customers excellent rates and choice. It also offers landlord insurance quotes.