Insurance News Archive

'Healthy' returns available for buy-to-let investors

Buy-to-let investors are enjoying strong returns on their investments, new research has suggested.

According to specialist lender Paragon, total returns on a property have increased from 10.6 per cent in September to 13.3 per cent last month.

Figures released by the Department for Communities and Local Government (DCLG) also show that the demand for private renting is high, with 2.5 million households renting privately in 2006.

This represents an increase of four per cent from last year and 12 per cent from 2004.

Nigel Terrington, chief executive of Paragon, said: "Landlords regard property as a stable, long-term asset class allowing investor control to a greater degree than many other investment vehicles.

"Many of them treat buy-to-let as a key element of their pension provision, offering strong overall returns over the long-term."

According to the group, the average price at which landlords were purchasing properties increased by 0.7 per cent between September and October, bringing the average purchase price to £167,560.

30 Nov 2006