Buy-to-let returns rise to 13.3% says Paragon

Posted: 07 Dec 2006 10:57:29 GMT

Buy-to-let returns grew 2.8 per cent in October, sector-specialist Paragon Mortgages has announced, rising from 10.5 to 13.3 per cent – the highest figure since June

Buy-to-let returns grew 2.8 per cent in October, sector-specialist Paragon Mortgages has announced, rising from 10.5 to 13.3 per cent – the highest figure since June.

The north of England led the market over the previous year for the second consecutive month, offering returns on investment (ROI) of 26.1 per cent.

The region is followed by the south-east with ROI of 24.2 per cent and greater London, at 16.9 per cent. National rental yields remained consistent at six per cent.

The highest-yielding regions over the month were Wales at 6.6 per cent, the south-west at 6.5 per cent and the north-west at 6.4 per cent.

National average rental incomes grew 0.1 per cent to £10,039, but this was far outstripped by rises in the south-east and north, where they grew 10.7 per cent.

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