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15 Feb 08 - Landlords 'Saw Returns Reach
16%'
Buy-to-let landlords had a successful 2007 after pocketing
average returns of 16% during the year, new figures show.
Birmingham Midshires said rising property prices and increasing
rents saw investors make 16.3% on their properties during
the year, excluding fees and mortgage interest, up from
returns of 13.5% in 2006.
The jump was aided by a 10.7% surge in house prices over
the 12 months, which pushed the price of an average investment
property up to £154,795.
But the group said most of the gains were seen during the
first six months, as five hikes in interest rates in the
previous year began to bite in the second half.
Tim Hague, managing director of Birmingham Midshires Mortgages,
said: "The fundamentals underpinning the buy-to-let
sector are sound.
"They include strong demand from higher immigration
levels and housing affordability concerns for first-time
buyers.
"However, we expect house price growth to be more
subdued in 2008, largely reflecting the impact of higher
interest rates."
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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