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Buy To Let Returns Rise

Buy To Let Returns Rise

Category: Mortgages

Updated: 31/10/2008
First Published: 18/02/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Review covers property prices and rental values for Buy to Let properties both at national and regional levels. The figures are calculated on a "standardised" basis so that price and rent movements are tracked on a like-for-like basis. This is the UK's only measure of the Buy to Let market on this basis. The figures are based on the Buy to Let lending of Birmingham Midshires, one of the UK's largest Buy to Let lenders.

  • Average total return for a buy to let investor was 16.3% in the year to December 2007, up from 13.5% in 2006
  • Average price of a typical Buy toLet property in the UK increased by 10.9% during 2007 to an average price of £154,795
  • Rental yield on UK Buy to Let properties rose marginally to 5.4% in year to December 2007
  • Northern Ireland Buy to Let investors had strongest gains with total returns of 44.3% in the year to December 2007
  • Average rent in the UK rose to £698 per month in 2007 from £617 in 2006, an increase of 13.1%
  • There are no regions where the average price of a Buy to Let property is below £100,000

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.