Birmingham Midshires: Landlords cashing in on buy-to-let boom

16 July 2007
Landlords in the UK are seeing an increase in returns and stronger yields on the back of positive growth in the buy-to-let sector at large, according to new reports from Birmingham Midshires.

Figures show that the average total return for a buy-to-let investor in the UK stood at 13 per cent for the year up to June 2007, up from under 12 per cent for the year up to June 2006.

This is indicative of healthy growth in the rental sector, prompted by strong tenant demand. While the strongest returns were evidenced in Northern Ireland, at 35.9 per cent, other strong performing regions included Scotland and the South East.

"Buy to let house price growth has edged higher over the past year, while rents continue to rise across the country, boosting returns," commented Tim Crawford of Birmingham Midshires.

"There also remains the potential for healthy long term capital appreciation in the buy to let sector," he added, suggesting that landlords can expect continued strong returns in the future.

The number of investors entering the buy-to-let sector on the advice of independent advisers has risen 20 per cent in May, according to the Mortgage Trust.

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