'Decent' arguments for staying in buy-to-let market

Posted: 24 Jul 2008 14:08:59 GMT

According to finance site, fool.co.uk, there are a number of "decent" arguments for landlords to stay in the housing market.

The site quotes figures from Paragon Mortgages buy-to-let survey, which shows that rental yields reached their highest level in two years in June and are now at 6.4 per cent and seven per cent.

Welsh landlords and those in the north and north-west are most profitable achieving seven per cent rental yields.

Research reveals that rental incomes have also risen by nearly 12 per cent over the last year and property values have, according to Paragon, risen by 7.5 per cent year on year.

However, Paragon did admit that property prices have only risen by 0.2 per cent over the past six months.

Commenting on the current situation for investors, Christina Jordan of fool.co.uk said: "It seems that for the serious buy-to-let investor, the market is still attractive in many ways. Added compliance costs, plus the added mortgage costs are not enough to put off landlords who are still seeing a decent return on their investment."

Ms Jordan also makes the point that with many first-time buyers finding it difficult to get on the property ladder, the demand for rental property is currently high.

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