Buy to let returns up in October
Returns on a UK property purchased 12 months ago now average 15.5 per cent, according to the latest buy-to-let index from Paragon Mortgages.
The lender’s index has found that the October figure an increase on the 14.2 per cent average seen in September has been boosted by increased interest from both immigrants and first time buyers
The average rent in October was 11,066, the index found 10.2 per cent higher than it was a year previous.
“There is solid and growing demand for decent, affordable rented homes in all parts of the country, but it is essential landlords purchase the type of property that meets tenants needs and expectations,” said John Heron, director of mortgages at Paragon.
“They want homes that are conveniently located for their place of work or study, with good transport links and local amenities.
“These figures show that professional landlords continue to invest in the types of property where there is strong and sustainable tenant demand,” added Mr Heron.
One in four landlords is looking to expand their portfolio in the coming years, according to the National Landlords Association.
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