Insurance News Archive
£20k profit for buy-to-let in London
London is the best place to invest in buy-to-let properties, according to a new report.
The research from Landlord Mortgages focused on parents who buy properties for their children to live in when they go to university, and then rent out extra rooms to their friends.
London investors can make a profit of £18,888 during their child's three years at university, in contrast to Manchester investors who can expect to make £6,235 in that time - a third as much.
Calculation of the figures took into account the amount of rent saved on alternative student accommodation.
"With stiff competition for rented accommodation in university towns investors are faced with a captive audience, meaning that this type of buy-to-let investment can prove highly profitable," said Lee Grandin, managing director of Landlord Mortgages.
"More than anyone else it is the student who knows what their peers want, and in their child, parents have the most qualified researcher," he added.
According to the Council of Mortgage Lenders, in August 2005 there were 632,000 buy to let mortgages worth a total of £63.5 billion, representing seven per cent of the total mortgage market.
22 Jun 2006