Investor landlords make 'a very good living'
Posted: 02 Jun 2006 09:24:06 GMT
The buy-to-let sector appears to be enjoying a period of buoyancy with investor landlords expanding their portfolios despite rising prices.
The latest Buy-to-Let Index from Paragon Mortgages shows that the average cost of an investment property increased by 1.99 per cent in the last month, which means that prices have now risen by 4.7 per cent since October last year.
With confidence in the sector high, landlords do not appear to be deterred by these extra costs and Paragon Mortgages' managing director John Heron has in fact observed a resurgence in buy-to-let activity since last autumn.
"In all parts of the country, upbeat landlords are buying properties at higher prices, secure in the knowledge that there is good tenant demand out there for the right property in the right place," he said.
Demand for rented accommodation appears to be particularly strong in northern cities, with students, key workers, families on benefit and young professionals all contributing to the growth of the sector.
The new research indicates that the north of England is leading the way in terms of the total annual return on initial investment and at 42.41 per cent the region is just ahead of Greater London at 40.88 per cent. The West Midlands is in third place with a return of 27.67 per cent.