Buy-to-let investors register good increases in their returns from property transactions during the 1st quarter of 2008

Posted under General by Jermaine

Buy-to-let investors have witnessed good increases in their returns from property transactions during the 1st quarter of 2008. The trend is evident in the latest quarterly ARLA Review & Index that has just been published.

The average return, according to the report, on a geared or mortgaged investment is 21.7 per cent, up 0.27 per cent. Returns on cash purchases average close to 11 per cent, 10.91 per cent, to be precise. Flats show a slightly higher return than that from houses - except in the North. All returns on rental investments comprise capital appreciation as well as rents.

The number of buy-to-let investors who have reported a considerable effect on the rental market owing to immigration has increased by almost 10 per cent this quarter or since the query was last raised (i.e. at the end of 2006).

Unsurprisingly, so to say, given this rise in immigrant demand as well as the domestic demographic trends, almost nine out of ten investment landlords surveyed continue to say that they’ve no intention at all of selling their investment-driven properties should house prices fall further. This majority proportion is almost unchanged on the last quarter.

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