Total '06 returns on rental 11.4%

Posted: 22 Dec 2006 10:18:54 GMT


            Property News - Total '06 returns on rental 11.4%

The average buy-to-let property in the UK ends 2006 five per cent more valuable than at the beginning of the year mortgage broker Paragon has said, equivalent to £7,736

The average buy-to-let property in the UK ends 2006 five per cent more valuable than at the beginning of the year mortgage broker Paragon has said, equivalent to £7,736.

Demand for rental property was still consistently outstripping supply the company added, ensuring that rental yields remained buoyant.

"This has definitely been a good year for most buy-to-let investors," said Nigel Terrington of Paragon.

"In terms of capital appreciation alone, the average buy-to-let investor has made over £7,700 this year just by owning a rental property.

"On top of that, he has generated almost £10,000 in rental income, an excellent total return on investment of £17,700 or 11.4 per cent over the past 12 months."

Property investors expect to increase their portfolios by an average six per cent during 2007 and eighty per cent of brokers predict that the market will continue to expand.


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