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2013 has been an excellent year for buy to let landlords. According to
the latest figures from LSL Property Services, UK landlords have seen an
average return on their investments of
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8.9%, which is far better than
anything they could have expected from a savings account.
Demand for Rental Property Continues to Rise
Gross yields from properties have stuck at 5.3% this year, which is
pretty good compared to previous years, but when you take into account
the increase in property prices and the level of demand for rental
properties, overall returns are now at an all-time high of 8.39%.
2014 Promises to be Even Better
Experts predict that 2014 will be an even better year for UK landlords as
long as property prices continue to rise in the same fashion, which
certainly looks like being the case. All being well, the average landlord
can expect to see an annual return on his or her investment in 2014 of
10.5%. This is based on the combined totals of rental income and capital
gain.
John Heron, director of mortgages at Paragon, a leading buy to let
lender, says: “2013 has been a good year for buy-to-let and landlords
certainly seem to be more active in the market. We have seen a steady
increase in the levels of optimism among our landlord customers, and this
looks set to stay in the New Year.”
Landlords Look to Invest in 2014
Optimism remains high amongst UK landlords and further research suggests
that more than a fifth intend to add more properties to their portfolios
in the next twelve months. Does this include you?
